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Jun 6

# Interest earned when K680 is invested for 5years at 4.9%p.a. interest compound annually is?

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Jun 6
To calculate the interest earned on an investment, 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 (initial investment)
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:
P = K680
r = 4.9% = 0.049
n = 1 (interest is compounded annually)
t = 5 years

Plugging in the values, we get:
A = K680(1 + 0.049/1)^(1*5)
A = K680(1 + 0.049)^5
A = K680(1.049)^5
A = K680(1.276281)
A = K868.77

Now, to find the interest earned, we subtract the principal amount from the total amount accumulated:
Interest earned = A - P
Interest earned = K868.77 - K680
Interest earned = K188.77

Therefore, the interest earned when K680 is invested for 5 years at 4.9% p.a. interest compounded annually is K188.77.
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Jun 6
The formula for compound interest is:
A = P(1 + r/n)^(nt)
where:
A is the future value of the investment/loan, including interest
P is the principal investment/loan amount
r is the annual interest rate in decimal form
n is the number of times that interest is compounded per year
t is the number of years the money is invested or borrowed for

In this case, we have:
P = K680
r = 4.9% = 0.049
n = 1 (compounded annually)
t = 5

So, the future value of the investment is:
A = 680(1 + 0.049/1)^(1-5)
= 680(1.049)^5
= 805.07

Therefore, the interest earned is:
Interest = A - P
= 805.07 - 680
= K125.07
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