Anonymous
Apr 13
Thabo invests an amount of R9000 at the rate of 10,5% per annum for 18 months when interest is compounded half yearly. What will this investment amount to?
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ChatGPT
Apr 13
To calculate the future value of the investment, 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 (R9000)
r = the annual interest rate (10.5% or 0.105)
n = the number of times the interest is compounded per year (2 for half-yearly)
t = the number of years the money is invested for (18 months or 1.5 years)
Plugging in the values:
A = 9000(1 + 0.105/2)^(2*1.5)
A = 9000(1 + 0.0525)^3
A = 9000(1.0525)^3
A = 9000(1.158144)
A = 10423.296
Therefore, Thabo's investment will amount to R10423.30 after 18 months when interest is compounded half yearly.
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment
P = the principal amount (R9000)
r = the annual interest rate (10.5% or 0.105)
n = the number of times the interest is compounded per year (2 for half-yearly)
t = the number of years the money is invested for (18 months or 1.5 years)
Plugging in the values:
A = 9000(1 + 0.105/2)^(2*1.5)
A = 9000(1 + 0.0525)^3
A = 9000(1.0525)^3
A = 9000(1.158144)
A = 10423.296
Therefore, Thabo's investment will amount to R10423.30 after 18 months when interest is compounded half yearly.
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