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Travka [436]
3 years ago
12

Sven deposited R3500 into a savings account where interest is compounded annually at 11.2% at the end of two years he withdrew R

1800.
calculate the amount of money left in the account after two years​
Mathematics
1 answer:
Vinil7 [7]3 years ago
3 0

Answer:

Amount left= 4,327.9 - 1,800

Step-by-step explanation:

Giving the following information:

Initial deposit (PV)= $3,500

Interest rate (i)= 11.2%

Number of periods (n)= 2 years

Withdrawal= $1,800

<u>First, we need to calculate the future value of the investment at the end of 2 years:</u>

FV= PV*(1 + i)^n

FV= 3,500*(1.112^2)

FV= $4,327.9

<u>Now, after the withdrawal:</u>

Amount left= 4,327.9 - 1,800

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