Answer:
a) N5995.13
b) N14376.61
c) N36762.11
Step-by-step explanation:
For repetitive calculations, I like to use a spreadsheet or graphing calculator. __
The formula for the amount is ...
A = P(1 +r)^t . . . . . . where principal P is invested for t years at rate r compounded annually
a)
The principal being invested is P = 5000. The interest rate is r = 9.5% = 0.095, and the time is t = 2 years. Putting these values into the formula gives ...
A = 5000(1 +0.095)^2
= 5000(1.199025) = 5995.125
This rounds to an account balance after 2 years of N5995.13.
The calculations for the other amounts and time periods are done the same way, but for different values of P and t. You can do these calculations by hand, but it is generally much easier to use a calculator, spreadsheet, or other tool.
The attachment shows use of a tool that lets a function be defined that takes P and t as arguments. It is shown as being evaluated for the different values of P and t in this problem.
b)
A = N10,000(1 +0.095)^4 = N10,000(1.43766095) = N14376.6095
This rounds to an account balance after 4 years of N14376.61.
c)
A = N28000(1.095)^3 ≈ N36762.11
