Question

1. $80000 was put in a fixed deposit account on 1st January, 2020 for 6 months. The rate of interest was 7.5% per annum. On 1st of July 2020, the total amount received was reinvested for a further 6 months at 7% per annum. Calculate the final amount received at the end of the year.

Answer 1

Answer:

$ 85905

Step-by-step explanation:

• 80000 x 1 x 75 / 2 x 100 = $ 3000
• 80000 + 3000 = $ 83000
• 83000 x 1 x 7 / 2 x 100 = $ 2905
• $ 80000 + $3000 + $2905 = $ 85905