CALculate the Compound interest earned on R15000 deposit into a bank for 2 Years @12percent p.a.interest
To calculate the compound interest earned on a deposit, you can use the formula:
A = P(1 + r/n)^(nt) - P
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (initial deposit)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years
In this case:
P = R15000
r = 12% = 0.12
n = 1 (compounded annually)
t = 2 years
Let's plug the values into the formula:
A = 15000(1 + 0.12/1)^(1*2) - 15000
A = 15000(1 + 0.12)^(2) - 15000
A = 15000(1.12)^(2) - 15000
A = 15000(1.2544) - 15000
A = 18816 - 15000
A = 3816
Therefore, the compound interest earned on a R15000 deposit into a bank for 2 years at 12% p.a. interest is R3816.