david has fixed 1200000.the yearly fixed deposite rate is 7.5%.how much money will he get with the interest after 5 years?
not sure but you can try multiplying all the numbers
1200000*0.075*5+1200000
To calculate the amount of money David will earn with interest after 5 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the final amount (with interest)
P = the principal amount (initial deposit)
r = annual interest rate (in decimal form)
n = number of times interest is compounded per year
t = number of years
For this question, David has made a fixed deposit of 1,200,000 with a yearly fixed deposit rate of 7.5%. Let's break it down and calculate the final amount after 5 years.
P = 1,200,000
r = 7.5% = 0.075 (converted to decimal form)
n = 1 (as it is compounded annually)
t = 5
Now, substitute these values into the formula:
A = 1,200,000 * (1 + 0.075/1)^(1*5)
Simplifying the formula:
A = 1,200,000 * (1 + 0.075)^5
Using your preferred method of calculation, solve the equation above:
A ≈ 1,200,000 * (1.075)^5
A ≈ 1,200,000 * 1.410071
A ≈ 1,692,085.20
Therefore, the amount of money David will have with interest after 5 years is approximately 1,692,085.20.