State the mount accumulated by each of the following present investment
(i) RM7000 in 8 year at 9% compounded annually
(ii) Rm1250 in 12 years at 4% compounded annually
To calculate the amount accumulated for each investment, we can use the formula for compound interest:
A = P(1 + r/n)^(n*t)
Where:
A = Amount accumulated
P = Principal amount (initial investment)
r = Interest rate (in decimal form)
n = Number of compounding periods per year
t = Number of years
Let's calculate the amount accumulated for each investment.
(i) RM7000 in 8 years at 9% compounded annually:
P = RM7000
r = 9% = 0.09 (converted to decimal)
n = 1 (compounded annually)
t = 8 years
Using the formula:
A = 7000(1 + 0.09/1)^(1*8)
A = 7000(1 + 0.09)^8
A = 7000(1.09)^8
A = 7000(1.999004355)
A ≈ RM13,993.03
Therefore, the amount accumulated for an investment of RM7000 in 8 years at 9% compounded annually is approximately RM13,993.03.
(ii) RM1250 in 12 years at 4% compounded annually:
P = RM1250
r = 4% = 0.04 (converted to decimal)
n = 1 (compounded annually)
t = 12 years
Using the formula:
A = 1250(1 + 0.04/1)^(1*12)
A = 1250(1 + 0.04)^12
A = 1250(1.04)^12
A = 1250(1.601031286)
A ≈ RM2,001.29
Therefore, the amount accumulated for an investment of RM1250 in 12 years at 4% compounded annually is approximately RM2,001.29.