Anonymous
Apr 15
Mandla decides to start saving money for the future. At the end of each month, she deposits R900 into an account at a Bank, which earns 8,25% interest per annum compounded monthly after 29 years?
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Apr 15
To calculate the future value of Mandla's savings after 29 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years the money is invested for
In this case:
P = R900
r = 8.25% = 0.0825
n = 12 (compounded monthly)
t = 29 years
A = 900(1 + 0.0825/12)^(12*29)
A = 900(1 + 0.006875)^(348)
A = 900(1.006875)^348
A = 900(6.032)
A = R5438.80
Therefore, after 29 years, Mandla's savings will grow to approximately R5438.80.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (initial deposit)
r = the annual interest rate (in decimal form)
n = the number of times the interest is compounded per year
t = the number of years the money is invested for
In this case:
P = R900
r = 8.25% = 0.0825
n = 12 (compounded monthly)
t = 29 years
A = 900(1 + 0.0825/12)^(12*29)
A = 900(1 + 0.006875)^(348)
A = 900(1.006875)^348
A = 900(6.032)
A = R5438.80
Therefore, after 29 years, Mandla's savings will grow to approximately R5438.80.
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