Amos deposits an amount of R 1260 in an account that pays 8,5% interest per year, compounded quarterly. After six years the amount in the account will be?

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Domino

Mathematics

14 August, 01:21

Amos deposits an amount of R 1260 in an account that pays 8,5% interest per year, compounded quarterly. After six years the amount in the account will be?

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Cedric Duffy · Answer 1

FV = PV * (1+r) ^n; where FV = Future Value;

PV = Present Value;

r = annual interest rate;

n = number of periods;

FV = 1260 * 1.085^6 = 1260 * 1.63 ≈ 2054;