Discover how IDNLearn.com can help you learn and grow with its extensive Q&A platform. Our experts provide accurate and detailed responses to help you navigate any topic or issue with confidence.
Sagot :
Answer:
He must invest R297 521 today.
Step-by-step explanation:
The compound interest formula is given by:
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
Banabas must pay his ex-wife an amount of R350 000 in two years’ time.
This means that [tex]t = 2, A(t) = 350000[/tex]
Interest rate of 8.15% per annum compounded monthly:
This means that [tex]r = 0.0815, n = 12[/tex].
Amount he must invest today:
This is P. So
[tex]A(t) = P(1 + \frac{r}{n})^{nt}[/tex]
[tex]350000= P(1 + \frac{0.0815}{12})^{2*12}[/tex]
[tex]P = \frac{350000}{(1 + \frac{0.0815}{12})^{2*12}}[/tex]
[tex]P = 297521[/tex]
He must invest R297 521 today.
Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for trusting IDNLearn.com with your questions. Visit us again for clear, concise, and accurate answers.
