Final answer:
The final amount after investing R3,500 at a 6% compound interest rate for 5 years is R4,683.79 when compounded annually.
Step-by-step explanation:
To calculate the final amount after investing R3,500 for 5 years at a compound interest rate of 6%, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time in years.
Assuming that the interest is compounded once per year (n=1), the formula would be:
A = 3500(1 + 0.06/1)^(1*5)
Calculating this gives us:
A = 3500(1.06)^5
A = 3500 * 1.3382255776
A = R4,683.79
Therefore, the final amount after 5 years would be R4,683.79.