Anonymous
Feb 6
Juma deposited a TSH 230000 at a bank that offer a rate of 9% per annual at a period of 18 years, if the amount is compounded monthly find the total amount deposited and future value?
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ChatGPT
Feb 6
To find the total amount deposited, we need to multiply the initial deposit by the number of months in the period:
Total amount deposited = Initial deposit * Number of months
Total amount deposited = TSH 230000 * 18 * 12
Total amount deposited = TSH 496,800,000
To find the future value, we can use the formula for compound interest:
Future value = Initial deposit * (1 + (interest rate/number of compounding periods))^(number of compounding periods * number of years)
In this case, the interest rate is 9% per year, compounded monthly. So the interest rate per month is 9%/12 = 0.75%.
Future value = TSH 230000 * (1 + (0.75%/100))^(12 * 18)
Future value = TSH 230000 * (1 + 0.0075)^(216)
Future value = TSH 230000 * (1.0075)^(216)
Future value ≈ TSH 1,014,365.72
Therefore, the total amount deposited is TSH 496,800,000 and the future value is approximately TSH 1,014,365.72.
Total amount deposited = Initial deposit * Number of months
Total amount deposited = TSH 230000 * 18 * 12
Total amount deposited = TSH 496,800,000
To find the future value, we can use the formula for compound interest:
Future value = Initial deposit * (1 + (interest rate/number of compounding periods))^(number of compounding periods * number of years)
In this case, the interest rate is 9% per year, compounded monthly. So the interest rate per month is 9%/12 = 0.75%.
Future value = TSH 230000 * (1 + (0.75%/100))^(12 * 18)
Future value = TSH 230000 * (1 + 0.0075)^(216)
Future value = TSH 230000 * (1.0075)^(216)
Future value ≈ TSH 1,014,365.72
Therefore, the total amount deposited is TSH 496,800,000 and the future value is approximately TSH 1,014,365.72.
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