58.April would like to invest $200 in the bank for one year. Three banks all have a nominal APR of 1.5%, but compound the intere
1 answer:
Answer:
$203.00
Step-by-step explanation:
Since the bank in question compounds interest just once, and this is a one year investment, it can be treated as a simple rate interest problem. Therefore, the total balance after one year (B) is given by the following formula:
April's balance would be $203.00 after one year.
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Answer:
54.72 months
Step-by-step explanation:
Given:
Future value = R35,000
Annuity = R500
Interest = 11.32% per year
Interest per month, r = = 0.943% = 0.00943
Let 'n' be the total time in months taken
Now,
Future value of annuity is calculated using the formula as:
on substituting the respective values, we get
or
or
1.6601 = 1.00943ⁿ
taking log both sides, we get
log(1.6601) = n × log(1.00943)
or
0.22= n × 0.00402
or
n = 54.72 months