Answered

Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.

4.1 An investor deposited R50 000-00 for 3 years at 10% p.a. Determine the net
price at maturity.
(3)
​

Sagot :

xujoy000

To calculate the net price at maturity, we use the formula for compound interest:

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

Where:

A = the amount at maturity

P = the principal amount (R50,000)

r = the annual interest rate (10% or 0.10)

n = the number of times interest is compounded per year (assuming it's compounded annually, n = 1)

t = the number of years the money is invested for (3 years)

Plugging in the values:

A = 50000(1 + 0.10/1)^(1*3)

A = 50000(1.10)^3

A = 50000(1.331)

A = 66550

Therefore, the net price at maturity is R66 550 at the end of 3 years.

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.