What is the compounded amount for K1000 deposited at 12.5% p.a compounded monthly after two years?
To calculate the compounded amount, we can use the formula:
A = P(1 + r/n)^(nt)
Where:
A = the compounded amount
P = the principal amount (K1000)
r = the annual interest rate (12.5% or 0.125)
n = the number of times interest is compounded per year (12 monthly)
t = the number of years (2 years)
Substituting the given values into the formula:
A = 1000(1 + 0.125/12)^(12*2)
Let's solve this equation step by step:
A = 1000(1 + 0.0104167)^(24)
A = 1000(1.0104167)^(24)
A = 1000(1.2800842)
A ≈ K1280.08
Therefore, the compounded amount after two years would be approximately K1280.08.
To calculate the compounded amount for K1000 deposited at 12.5% per annum compounded monthly after two years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the compounded amount
P = the principal amount (K1000 in this case)
r = the annual interest rate (12.5% or 0.125 as a decimal)
n = the number of times compounding occurs per year (12, for monthly compounding)
t = the number of years (2 years in this case)
Substituting the values into the formula, we have:
A = 1000(1 + 0.125/12)^(12 * 2)
Calculating inside the parenthesis:
A = 1000(1 + 0.01041666667)^(24)
Calculating the exponent:
A = 1000(1.01041666667)^(24)
Evaluating the exponent:
A ≈ 1000(1.2953765)
Calculating the final result:
A ≈ K1295.38
Therefore, the compounded amount for a K1000 deposit at 12.5% per annum compounded monthly after two years is approximately K1295.38.
To calculate the compounded amount for K1000 deposited at 12.5% p.a compounded monthly after two years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the compounded amount
P is the principal amount (K1000 in this case)
r is the annual interest rate (12.5% or 0.125 as a decimal)
n is the number of times interest is compounded per year (monthly in this case, so n = 12)
t is the number of years (2 in this case)
Now let's plug in the values:
A = K1000(1 + 0.125/12)^(12*2)
First, we need to simplify the exponent:
A = K1000(1 + 0.0104167)^24
Next, compute the inner part of the expression:
A = K1000(1.0104167)^24
Now, calculate the value within the parentheses:
A = K1000(1.2836678)
Finally, multiply the principal amount by the calculated value:
A ≈ K1000 * 1.2836678
A ≈ K1283.67
Therefore, the compounded amount for a K1000 deposit at 12.5% p.a compounded monthly after two years is approximately K1283.67.