Question

Sven deposited R3500 into a savings account where interest is compounded annually at 11.2% at the end of two years he withdrew R1800.

calculate the amount of money left in the account after two years​

Answer 1

Amount left= 4,327.9 - 1,800

Explanation:

Giving the following information:

Initial deposit (PV)= $3,500

Interest rate (i)= 11.2%

Number of periods (n)= 2 years

Withdrawal= $1,800

First, we need to calculate the future value of the investment at the end of 2 years:

FV= PV*(1 + i)^n

FV= 3,500*(1.112^2)

FV= $4,327.9

Now, after the withdrawal:

Amount left= 4,327.9 - 1,800