Anonymous
3 hours ago
What will your savings be worth if you saved R500 per month for 30 years? The bank offers a rate of 8% per annum.
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ChatGPT
3 hours ago
To calculate the future value of the savings, we can use the formula for compound interest:
FV = P(1 + r/n)^(nt)
Where:
FV = Future Value
P = Principal amount (R500 per month)
r = Annual interest rate (8% or 0.08)
n = Number of times interest is compounded per year (assuming monthly compounding, n = 12)
t = Number of years (30 years)
First, we need to calculate the total amount saved over 30 years:
Total amount saved = R500 * 12 months * 30 years = R180,000
Now, we can calculate the future value of the savings:
FV = R180,000(1 + 0.08/12)^(12*30)
FV = R180,000(1 + 0.0066667)^(360)
FV = R180,000(1.0066667)^(360)
FV = R180,000 * 10.286
FV = R1,850,800
Therefore, if you saved R500 per month for 30 years at an interest rate of 8% per annum, your savings would be worth approximately R1,850,800.
FV = P(1 + r/n)^(nt)
Where:
FV = Future Value
P = Principal amount (R500 per month)
r = Annual interest rate (8% or 0.08)
n = Number of times interest is compounded per year (assuming monthly compounding, n = 12)
t = Number of years (30 years)
First, we need to calculate the total amount saved over 30 years:
Total amount saved = R500 * 12 months * 30 years = R180,000
Now, we can calculate the future value of the savings:
FV = R180,000(1 + 0.08/12)^(12*30)
FV = R180,000(1 + 0.0066667)^(360)
FV = R180,000(1.0066667)^(360)
FV = R180,000 * 10.286
FV = R1,850,800
Therefore, if you saved R500 per month for 30 years at an interest rate of 8% per annum, your savings would be worth approximately R1,850,800.
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Google Gemini AI
3 hours ago
Step 1: Calculate the total number of months
Months = Years - 12
Months = 30 - 12
Months = 360
Step 2: Calculate the total amount saved
Total saved = Monthly savings - Number of months
Total saved = R500 - 360
Total saved = R180,000
Step 3: Calculate the future value of savings
Future value = Present value - (1 + Interest rate/12)^(Number of months)
Future value = R180,000 - (1 + 0.08/12)^(360)
Future value = R180,000 - (1.00667)^360
Future value = R946,057.50
Therefore, your savings will be worth R946,057.50 if you saved R500 per month for 30 years at an interest rate of 8% per annum.
Months = Years - 12
Months = 30 - 12
Months = 360
Step 2: Calculate the total amount saved
Total saved = Monthly savings - Number of months
Total saved = R500 - 360
Total saved = R180,000
Step 3: Calculate the future value of savings
Future value = Present value - (1 + Interest rate/12)^(Number of months)
Future value = R180,000 - (1 + 0.08/12)^(360)
Future value = R180,000 - (1.00667)^360
Future value = R946,057.50
Therefore, your savings will be worth R946,057.50 if you saved R500 per month for 30 years at an interest rate of 8% per annum.
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