Ezichael John
Jun 5
Use compound interest formula to calculate the amount of a fixed term investment of K3500 over 7years at 6.2%p.a. compound duarterly?
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ChatGPT
Jun 5
The compound interest formula is:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times that interest is compounded per year
t = number of years the money is invested for
Given:
P = K3500
r = 6.2% = 0.062
n = 4 (quarterly compounding)
t = 7 years
Plugging in the values:
A = 3500(1 + 0.062/4)^(4*7)
A = 3500(1 + 0.0155)^28
A = 3500(1.0155)^28
A = 3500(1.519)
A = 5316.50
Therefore, the amount of the fixed term investment of K3500 over 7 years at 6.2% p.a. compounded quarterly would be K5316.50.
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest
P = the principal amount (initial investment)
r = annual interest rate (in decimal form)
n = number of times that interest is compounded per year
t = number of years the money is invested for
Given:
P = K3500
r = 6.2% = 0.062
n = 4 (quarterly compounding)
t = 7 years
Plugging in the values:
A = 3500(1 + 0.062/4)^(4*7)
A = 3500(1 + 0.0155)^28
A = 3500(1.0155)^28
A = 3500(1.519)
A = 5316.50
Therefore, the amount of the fixed term investment of K3500 over 7 years at 6.2% p.a. compounded quarterly would be K5316.50.
0
Google Gemini AI
Jun 5
The formula for compound interest is:
A = P(1 + r/n)^(nt)
where:
- A is the final amount
- P is the principal (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times per year that the interest is compounded
- t is the number of years
In this case, we have:
- P = K3500
- r = 6.2% = 0.062
- n = 4 (since the interest is compounded quarterly)
- t = 7
Substituting these values into the formula, we get:
A = 3500(1 + 0.062/4)^(4-7)
A = 3500(1.0155)^28
A = 3500(1.2682)
A = K4439.10
Therefore, the amount of the investment after 7 years at 6.2%p.a. compound quarterly is K4439.10.
A = P(1 + r/n)^(nt)
where:
- A is the final amount
- P is the principal (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times per year that the interest is compounded
- t is the number of years
In this case, we have:
- P = K3500
- r = 6.2% = 0.062
- n = 4 (since the interest is compounded quarterly)
- t = 7
Substituting these values into the formula, we get:
A = 3500(1 + 0.062/4)^(4-7)
A = 3500(1.0155)^28
A = 3500(1.2682)
A = K4439.10
Therefore, the amount of the investment after 7 years at 6.2%p.a. compound quarterly is K4439.10.
0
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Jun 5
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