How much money would you have in an account after 15 years if you earned 9,3% annually and you started with R573,00?

Question

asked Feb 24, 2022 176k views

1 Answer

Konsumierer · Answer 1 · 2022-03-02T17:17:40+0000

Given:

Principal = R573.00

Rate of interest = 9.3% annually

Time = 15 years.

To find:

The amount after 15 years.

Solution:

Formula for amount is:

$A=P\left(1+(r)/(n)\right)^(nt)$

Where, P is principal, r is the rate of interest in decimal, n is the number of time interest compounded in an year and t be the number of years.

The interest is compounded annually, so n=1.

Putting
P=573,r=0.093,n=1,t=15 in the above formula, we get

$A=573\left(1+(0.093)/(1)\right)^(1(15))$

$A=573\left(1+0.093\right)^(15)$

$A=573\left(1.093\right)^(15)$

A=2174.98893

$A\approx 2174.99$

Therefore, the amount in the account after 15 years is about R2174.99.