Question

GR 12 MATHEMATICS B U2 a. Using the compound interest formula, calculate the amount accruing after the stated period: INTEREST AND INFLATION K250 is invested for 5 years at 8% p.a.​

Answer 1

Explanation:

I will assume compounding period : annual

I will also assume K 250 = 250 000 dollars

then the amount becomes

250 000 ( 1 + .08)^5 = $ 367332.02 ( .08 is 8% in decimal)

interest is 250 000 taken away from this = $ 117 332.02