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Trevor invests an amount of R20 000 in a bank. Calculate, using appropriate formulae,
the accumulated amount after six years and the total interest he will receive, if the
interest rate is:
(1) 4,5% per annum simple interest
(2)
4,5% per annum compound interest

Respuesta :

anthougo

1) The accumulated amount after six years and the total interest that Trevor will receive if the interest rate is 4.5% per annum simple interest after 6 years are R25,400 and R5,400 respectively.

2) The accumulated amount after six years and the total interest that Trevor will receive if the interest rate is 4.5% per annum compound interest after 6 years are R26,045.20 and R6,045.20 respectively.

Data and Calculations:

Simple Interest:

Principal = R20,000

Investment period = 6 years

Interest rate = 4.5%

Simple interest for 6 years = R5,400 ($20,000 x 6 x 4.5%)

Principal + Interest = R25,400 (R20,000 + R5,400)

Compound Interest:

Principal = R20,000

Investment period = 6 years

Interest rate = 4.5%

N (# of periods) = 6 years

I/Y (Interest per year) = 4.5%

PV (Present Value) = R20,000

PMT (Periodic Payment) = R0

Results:

FV = R26,045.20

Total Interest = R6,045.2

Learn more about simple and compound interests at https://brainly.com/question/3575751

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