An account having N12 000 earns a compound inte... - SS3 Mathematics Financial Arithmetic Question
An account having \(N12,000\) earns a compound interest of \(20\%\) per annum. What is its value after \(5\) years? \((a)N30,500\ (b)N29,600\ 9\ (c)N29,860\ (d)N25,200\)
A
N30,500
B
\(N29,600\ 9\)
C
N29,860
D
N25,200
correct option: c
\[A = P(1 + R)^{T}\]
\[P = 12000\ \ \ R = 20\% = 0.2\ \ \ \ \ T = 5\]
\[A = 12000{(1 + 0.2)}^{5}\]
\[A = 12000{(1.2)}^{5}\]
\(A = N29,859.84\ \cong N29,860\ \ \)
Please share this, thanks:
Add your answer
No responses