Financial maths Grade:10 math core?

Hi there im doing math core and financial math i find difficult could anyone help my with it please..??

A=P(1+in)-simple

a=Accumulated(Total)

P=Principle(initial)

i=%(x/100)

n=years

Im not sure how to work this out...

If I invest R2000.00 for 3 years at a percentage rate of 5.5% Determine the accumulated..???Help..

Update:

wont you take....

R2000.00 x 5.5% = 110 then..

R110.00 x 3 = 330 then

A=R2330.00..??

2 Answers

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  • Anonymous
    8 years ago
    Best Answer

    A=P(1+r/n)^nt

    r=interest rate as a decimal

    n=number of times interest is calculate/year

    t=time in years

    P=principal amount

    A= amount of money after t years at r interest rate calculated n times per year

    Plug in our values

    A=2000(1+0.055/12)^36

    =R2357.897

    ≈R2358

  • 8 years ago

    Is the intrest rate an anual perctent or a monthly percentage? Also, are you investing 2000.00 each year or for the whole 3 year period?

    I will take it as a simple plug and chug quesiton. I think they are investion 2000.00 total and that it is an anual percent rate. In that case you can just plug in your numbers.

    A=2000.00(1+[(5.5/100)])

    A2=A(1+[(5.5/100)])

    A3=A2(1+[(5.5/100)])

    This gives you A3=2348.48

    If you just used the simplified equation that you gave in your quesiton, it wil not account for the intrest on the profit for each year. I would just do it one year at a time, this doesnt account for the intrest being compounded each month, but its better than the 2330 you get if you use the simplified equation.

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