document.write( "Question 582423: Anne invests R6000 for 3 years at 12,5% p.a compounded quarterly. How much interest will she earn after 3 years? \n" ); document.write( "

Algebra.Com's Answer #372043 by Edwin McCravy(20054) $\"\"$ $\"About$

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Anne invests R6000 for 3 years at 12,5% p.a compounded quarterly. How much interest will she earn after 3 years?
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document.write( "First we will calculate the final amount using the equation\r\n" );
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document.write( "A = P(1 + )^nt\r\n" );
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document.write( "in which\r\n" );
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document.write( "A = the final amount of rupees = ?\r\n" );
document.write( "P = the biginning amount of rupees = 6000\r\n" );
document.write( "r = the rate expressed as a decimal = 0.125\r\n" );
document.write( "n = the number of times per year the interest is compounded = 4\r\n" );
document.write( "t = the number of years = 3\r\n" );
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document.write( "A = 6000(1 + )^4*3\r\n" );
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document.write( "A = 6000(1 + .03125)¹²\r\n" );
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document.write( "A = 6000(1.03125)¹²\r\n" );
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document.write( "A = R8679.98\r\n" );
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document.write( "Interest = A - P = R8679.98 - R6000 = R2679.98\r\n" );
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document.write( "Edwin

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