Final answer:
To calculate the total return for a person who pays PKR 1000 per month for 3 years to an organization with a 12% profit compounded monthly agreement, use the formula for compound interest. The factors that influence the total return are the monthly payment amount, interest rate, frequency of compounding, and duration of the agreement.
Step-by-step explanation:
To calculate the total return for a person who pays PKR 1000 per month for 3 years to an organization with a 12% profit compounded monthly agreement, we can use the formula for compound interest. The formula is: A = P(1 + r/n)^(nt), where A is the future value, P is the principal (in this case, PKR 1000), r is the annual interest rate (12% or 0.12), n is the number of times interest is compounded per year (12 for monthly compounding), and t is the time in years (3 years in this case).
So, the calculation would be: A = 1000(1 + 0.12/12)^(12*3) = 1000(1 + 0.01)^36 = 1000(1.01)^36 = 1000 * 1.4418 ≈ PKR 1441.80.
The factors that influence the total return are the monthly payment amount, the interest rate, the frequency of compounding, and the duration of the agreement.