Question

2. Sven deposited R3 500 Into a savings account where interest is
compounded annually at 112%. at the end of two years, he withdrew
R1800
2.1 Calculate the amount of money left in the account after two years. (5)
of money in Sven's account at the end of four​

Answer 1

Giving the following information:

Initial deposit (PV)= Rs3,500

Interest rate (i)= 11.2% Withdrawal= Rs1,800

Number of periods (n)= 2 years

First, we need to calculate the future value of the investment at the end of 2 years:

FV= PV*(1 + i)^n

FV=3,500*(1.112^2)

FV= Rs4,327.9

Now, after the withdrawal:

2.00 Rs4693% KB/S

Amount left= 4,327.9 - 1,800