Question

Calculate the accumulated amount after 3 years, if R5 000 is invested at an interest rate of 10% compounded quarterly?​

Answer 1

$~~~~~~ \textit{Compound Interest Earned Amount} \\\\ A=P\left(1+\frac{r}{n}\right)^{nt} \quad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill &\ 5000\\ r=rate\to 10\%\to \frac{10}{100}\dotfill &0.10\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{quarterly, thus four} \end{array}\dotfill &4\\ t=years\dotfill &3 \end{cases} \\\\\\ A=5000\left(1+\frac{0.10}{4}\right)^{4\cdot 3}\implies A=5000(1.025)^{12}\implies A\approx 6724.44$

Answer 2

Answer:

R6,724.44 or so I think that's right