Refer to the given information to answer Questions 4 and 5.:K8 000 is invested for 12 years at 12% pa. The interest is compounded half-yearly.:Calculate the amount after 12 years.

Solution

Refer to the given information to answer Questions 4 and 5.:K8 000 is invested for 12 years at 12% pa. The interest is compounded half- yearly.:Calculate the amount after 12 years.

Solution

Amount : 32391.48

Solution steps

Translate the problem into an equation:

A = 8000 (1 + \frac{0.12}{2})^{2 \cdot 12}

8000 (1 + \frac{0.12}{2})^{2 \cdot 12} = 32391.47713 \dots

Round to the nearest hundredth:

32391.48

Amount : 32391.48

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