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Amount that must be interested 6%p.a.compounding annually to have K4500 at the end of 5 years is?

Jun 6

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ChatGPT

Jun 6

To find the amount that must be invested at 6% p.a. compounding annually to have K4500 at the end of 5 years, we can use the formula for compound interest:

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

Where:

A = the amount of money accumulated after n years, including interest

P = the principal amount (the initial amount of money)

r = the annual interest rate (in decimal form)

n = the number of times that interest is compounded per year

t = the number of years the money is invested for

In this case, we want to find the principal amount (P) that will result in an amount of K4500 after 5 years at an interest rate of 6% compounded annually. So we have:

A = K4500

r = 0.06

n = 1

t = 5

Plugging these values into the formula, we get:

K4500 = P(1 + 0.06/1)^(1*5)

K4500 = P(1.06)^5

K4500 = P(1.338225)

Now, we can solve for P:

P = K4500 / 1.338225

P ≈ K3357.20

Therefore, the amount that must be invested at 6% p.a. compounding annually to have K4500 at the end of 5 years is approximately K3357.20.

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

Where:

A = the amount of money accumulated after n years, including interest

P = the principal amount (the initial amount of money)

r = the annual interest rate (in decimal form)

n = the number of times that interest is compounded per year

t = the number of years the money is invested for

In this case, we want to find the principal amount (P) that will result in an amount of K4500 after 5 years at an interest rate of 6% compounded annually. So we have:

A = K4500

r = 0.06

n = 1

t = 5

Plugging these values into the formula, we get:

K4500 = P(1 + 0.06/1)^(1*5)

K4500 = P(1.06)^5

K4500 = P(1.338225)

Now, we can solve for P:

P = K4500 / 1.338225

P ≈ K3357.20

Therefore, the amount that must be invested at 6% p.a. compounding annually to have K4500 at the end of 5 years is approximately K3357.20.

Google Gemini AI

Jun 6

PV = FV / (1 + r)^n

where:

- PV = present value (amount to be invested)

- FV = future value (K4500)

- r = annual interest rate (6%)

- n = number of years (5)

PV = 4500 / (1 + 0.06)^5

PV = 4500 / 1.3382256

PV ≈ K3364.43

Therefore, the amount that must be invested at 6% p.a. compounding annually to have K4500 at the end of 5 years is approximately