Suppose you invest R15000 with ABSA at a 6% simple interest rate.  How much will be in your account after 5 months?

To calculate the amount in your account after 5 months with simple interest, we can use the formula:

\[
A = P \times \left(1 + \frac{r \times t}{100}\right)
\]

Where:
- \(A\) is the amount in your account after the interest is applied.
- \(P\) is the principal amount (initial investment), which is R15,000.
- \(r\) is the annual interest rate, which is 6%.
- \(t\) is the time in years. Since we are dealing with months, \(t\) will be \( \frac{5}{12} \) years.

Let's plug in the values:

\[
A = 15000 \times \left(1 + \frac{6 \times \frac{5}{12}}{100}\right)
\]

Now, let's calculate the value.The amount in your account after 5 months will be approximately **R15,375**.

Would you like more details, or do you have any further questions?

Here are some related questions you might find interesting:
1. What would be the amount if the investment was for 1 year?
2. How would the amount change with a 7% interest rate instead of 6%?
3. What is the total interest earned over the 5 months?
4. How would compound interest affect the final amount after 5 months?
5. What if the interest rate was calculated monthly instead of yearly?

**Tip:** Always double-check the time period in interest calculations to ensure the correct formula is applied!

Learn how to calculate the amount in your account after 5 months with simple interest on an investment of R15000 at a 6% annual rate. Get a detailed solution and understand the formula used for interest calculation. Suitable for Grades 10-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation