Math Problem Statement
Solution
The question asks to find the compound interest from investing Rp 5,000,000 at an interest rate of 8%, compounded quarterly over 10 years.
To calculate the compound interest, we use the compound interest formula:
Where:
- is the final amount (principal + interest),
- is the principal amount (Rp 5,000,000),
- is the annual interest rate (8% or 0.08),
- is the number of times the interest is compounded per year (quarterly means 4 times a year),
- is the number of years (10 years).
Let's calculate the compound interest!The final amount after 10 years of investing Rp 5,000,000 at 8% interest compounded quarterly is approximately Rp 11,040,198.32. The compound interest earned over this period is approximately Rp 6,040,198.32.
Would you like more details or have any questions?
Here are 5 related questions:
- How does the frequency of compounding affect the total interest earned?
- What would happen if the interest rate were 10% instead of 8%?
- How can we calculate the interest if it's compounded monthly instead of quarterly?
- What is the formula for continuously compounded interest?
- What is the difference between simple interest and compound interest?
Tip: Increasing the frequency of compounding (e.g., quarterly, monthly) leads to a higher accumulated interest over time.
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Interest Rate
Time
Formulas
A = P(1 + r/n)^(nt)
Theorems
Compound Interest Theorem
Suitable Grade Level
High School (Grades 10-12)
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