Bongiwe invests R12000 in a savings account at 6,5% per annum compound interest.Calculate how much there will be in the savings account after 5 years
12000(1+.065)^5
12000(1+0.65)^5
12000+1.65×5
12000+8.05
= 12008.05
Well, Bongiwe is certainly putting her money to work! Let's do some number crunching to see how much she'll have after 5 years.
First, we'll need to calculate the compound interest. The formula for compound interest is: A = P(1+r/n)^(nt)
Where:
A = the final amount in the account
P = the principal amount (initial investment)
r = the annual interest rate (in decimal form)
n = the number of times interest is compounded per year
t = the number of years
In this case, Bongiwe invested R12000 at an interest rate of 6.5% per annum, compounded annually, for 5 years. So let's plug in the numbers:
A = 12000(1+0.065/1)^(1*5)
Great, let's calculate that:
A = 12000(1.065)^5
A ≈ 12000(1.367449)
A ≈ R16,409.39
So after 5 years, Bongiwe's savings account will have approximately R16,409.39. Now that's some compound interest growth worth celebrating!
To calculate the amount in the savings account after 5 years, we can use the compound interest formula:
A = P(1 + r/n)^(n*t)
Where:
A = the future value of the investment
P = the principal amount (the initial investment)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years the money is invested for
In this case:
P = R12000
r = 6.5% = 0.065
n = 1 (compounded annually)
t = 5
Plugging the values into the formula, we get:
A = 12000(1 + 0.065/1)^(1*5)
A = 12000(1 + 0.065)^5
A ≈ 12000(1.065)^5
A ≈ 12000(1.349858)
A ≈ 16198.3
Therefore, there will be approximately R16,198.30 in the savings account after 5 years.
To calculate how much Bongiwe will have in the savings account after 5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the final amount
P is the principal amount (initial investment)
r is the annual interest rate (in decimal form)
n is the number of times interest is compounded per year
t is the number of years
Given information:
P = R12,000
r = 6.5% or 0.065 (in decimal form)
n = 1 (interest compounded annually)
t = 5 years
Plugging in these values into the formula, we have:
A = 12000(1 + 0.065/1)^(1*5)
Now let's calculate the expression inside the parentheses first:
(1 + 0.065/1)^(1*5) = (1 + 0.065)^5
Using a calculator, we find that (1 + 0.065)^5 is approximately 1.3401.
Now substituting this value back into the original formula:
A = 12000 * 1.3401
A = 16,081.20
Therefore, Bongiwe will have approximately R16,081.20 in the savings account after 5 years.