Question

Example An investor Saved #120,000 For 7 years in a bank which pays interest of 11½% per annum Calculate the a. Interest which accrued b balance if # 25,000 was withdrawn from the account (N 28,276) 00​

Answer 1

`~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+(r)/(n)\right)^(nt) \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\$120000\\ r=rate\to 11.5\%\to (11.5)/(100)\dotfill &0.115\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{per annum, thus once} \end{array}\dotfill &1\\ t=years\dotfill &7 \end{cases}`

`A=120000\left(1+(0.115)/(1)\right)^(1\cdot 7) \implies A \approx 257101.92 \\\\\\ \underset{earned~interest}{\stackrel{257101.92 - 120000}{\text{\LARGE 137101.92}}}\hspace{10em}\underset{adjusted~balance}{\stackrel{257101.92 - 25000}{\text{\LARGE 232101.92}}}`