Question

Calculate the interest if R300 is invested for 3years at 5% per annum compound interest.​

Answer 1

Compound Interest

Principal(P) = R300 rate( r )=5% n=5 years

Total amount

= P(1+r/100)^n

= 300(1+5/100)^3

=R347. 2875

Interest

= Total amount - Principal amount

= 347.2875 - 300

= R47.2875

= R47.30( rounded up to 2

decimal places)

Answer 2

SIMPLE INTEREST=PRT/100

P=300

R=5%

T=3

SI=300×5×3/100

SI=3×5×3

SI=45