Given:
Principal = R573.00
Rate of interest = 9.3% annually
Time = 15 years.
To find:
The amount after 15 years.
Solution:
Formula for amount is:
[tex]A=P\left(1+\dfrac{r}{n}\right)^{nt}[/tex]
Where, P is principal, r is the rate of interest in decimal, n is the number of time interest compounded in an year and t be the number of years.
The interest is compounded annually, so n=1.
Putting [tex]P=573,r=0.093,n=1,t=15[/tex] in the above formula, we get
[tex]A=573\left(1+\dfrac{0.093}{1}\right)^{1(15)}[/tex]
[tex]A=573\left(1+0.093\right)^{15}[/tex]
[tex]A=573\left(1.093\right)^{15}[/tex]
[tex]A=2174.98893[/tex]
[tex]A\approx 2174.99[/tex]
Therefore, the amount in the account after 15 years is about R2174.99.
