Question

3. (a) Calculate the compound interest over an amount of N$ 58 000 that is invested for 6 years at a rate of 5% pa​

Answer 1

The final balance is $78,243.04.

The total compound interest is $20,243.04.

Explanation:

Year Principal Yearly Interest Total Interest Total Balance

0 58,000 0 0 58,000

1 58,000 2,967.39 2,967.39 60,967.39

2 58,000 3,119.21 6,086.6 64,086.6

3 58,000 3,278.79 9,365.4 67,365.4

4 58,000 3,446.54 12,811.94 70,811.94

5 58,000 3,622.88 16,434.82 74,434.82

6 58,000 3,808.23 20,243.04 78,243.04