[tex]here \: is \: your \: answer[/tex]
To find the sum of money that amounts to a certain value in the future, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future amount
P = the principal (initial amount)
r = the interest rate (in decimal form)
n = the number of times interest is = 12,00 ×1.21550625
A ≈ 14,586.07
Therefore, the sum of money that amounts to 12,000 in 4 years at a 5% interest rate per annum is approximately 14,586.07.
(ii) For the second scenario, where the principal is 8,250 in 5 years at an interest rate of 7.5% per annum, we can use the same formula:
A = 8,250(1 + 0.075/1)^(1*5)
A = 8,250(1.075)^5
A = 8,250 * 1.407100044
A ≈ 11,602.18
Therefore, the sum of money that amounts to 8,250 in 5 years at a 7.5% interest rate per annum is approximately 11,602.18.
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Answers & Comments
[tex]here \: is \: your \: answer[/tex]
To find the sum of money that amounts to a certain value in the future, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = the future amount
P = the principal (initial amount)
r = the interest rate (in decimal form)
n = the number of times interest is = 12,00 ×1.21550625
A ≈ 14,586.07
Therefore, the sum of money that amounts to 12,000 in 4 years at a 5% interest rate per annum is approximately 14,586.07.
(ii) For the second scenario, where the principal is 8,250 in 5 years at an interest rate of 7.5% per annum, we can use the same formula:
A = 8,250(1 + 0.075/1)^(1*5)
A = 8,250(1.075)^5
A = 8,250 * 1.407100044
A ≈ 11,602.18
Therefore, the sum of money that amounts to 8,250 in 5 years at a 7.5% interest rate per annum is approximately 11,602.18.