Question

Amos deposits an amount of R 1260 in an account that pays 8,5% interest per year, compounded quarterly. After six years the amount in the account will be?

Answer 1

FV = PV × (1+r)^n ; where FV = Future Value;
PV = Present Value;
r = annual interest rate;
n = number of periods;
FV = 1260 × 1.085^6 = 1260 × 1.63 ≈ 2054 ;