Question

Calculate the accumulated amount after 3 years, if R5 000 is invested at an interest rate of 10% compounded quarterly?​

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 &\$5000\\ r=rate\to 10\%\to (10)/(100)\dotfill &0.10\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &3 \end{cases} \\\\\\ A=5000\left(1+(0.10)/(4)\right)^(4\cdot 3)\implies A=5000(1.025)^(12)\implies A\approx 6724.44`

Answer 2

R6,724.44 or so I think that's right