sarah recives an inheritance of 180000.she decided to invest this for the next five years as part of her saving plan for a housi
ng deposit. The first year she puts the money in the bank and earns 5.75% per annum interest.How much does she have at the end of the first year ?
1 answer:
Answer: 10350
Step-by-step explanation:
Amount invested = Principal = 180,000
Interest rate = 5.75%
Time = 1 year
The interest that is earned at the end of the first year will be:
= PRT
= 180,000 × 5.75% × 1
= 180,000 × 0.0575 × 1
= 10350
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