SOLUTION: Mr Nkomo gives his son R50000 on his eighteenth birthday.the money is invested on fixed deposit at 18% per annum compounded monthly. How old will the son be,when he is able to coll

Question 851813: Mr Nkomo gives his son R50000 on his eighteenth birthday.the money is invested on fixed deposit at 18% per annum compounded monthly. How old will the son be,when he is able to collect one million rand from his investment.
Answer by richwmiller(17219) (Show Source): You can put this solution on YOUR website!
A = P ( 1 + r/n )^nt
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
A = amount after time t
1000000 = 50000 ( 1 + .18/12 )^12t
t = 16.7675
add that to 18
34.7675

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