SOLUTION: A man bought 50 thousand Australian Dollars in January 2007 at A$1 = S$1.2789 and put it in a bank that pays a compound interest of 7.6% per annum compounded every 3 months.
a.
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a.
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Question 507996: A man bought 50 thousand Australian Dollars in January 2007 at A$1 = S$1.2789 and put it in a bank that pays a compound interest of 7.6% per annum compounded every 3 months.
a. How much A$ will he have in the bank account in January 2007 ?
My answer ::
A = 50000(1+7.6/400)^8
A= A$ 58125.07
b. He exchanged all the A$ into S$ in January 2009 at the rate of A$1 = S$0.9876. Calculate the amount gain/loss for the investment, giving your answer in S$ correct to the nearest 50 cents.
I can't get part b correctly. I've tried to convert both AS$50k and A$58125.07 into S$ using both rate in Jan 2007 and 2009. But I still can't get it correctly. Please help me :) Answer by rfer(16322) (Show Source):
You can put this solution on YOUR website! A=50000(1+0.076/4)^8
A=50000(1.019)^8
A=5000*1.1625
A=58,125.07 (A$)
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58125.07/0.9876=58,854.80 ($US)
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