Math Problem Statement
Solution
The problem states that a farmer has deposited Rp100,000,000.00 in a bank with a compound interest rate of 0.6% per quarter for 3 years. We need to find the total interest earned after 3 years.
Step-by-Step Solution:
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Identify Variables:
- Principal (P) = Rp100,000,000.00
- Interest rate per quarter (r) = 0.6% = 0.006
- Number of quarters in 3 years =
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Compound Interest Formula: where is the amount after time .
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Calculate the Final Amount (A):
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Calculate Total Interest:
Let's compute this.The final amount after 3 years is approximately Rp107,442,416.77. The total interest earned after 3 years is around Rp7,442,416.77.
Would you like more details or have any questions? Here are some related questions:
- How would the total interest change if the interest rate increased to 1% per quarter?
- What would be the total amount if the money was withdrawn after 2 years instead of 3?
- How is compound interest different from simple interest in this scenario?
- What is the effective annual interest rate in this case?
- If the interest was compounded monthly instead of quarterly, what would be the total interest?
Tip: When dealing with compound interest, it's important to know the compounding frequency as it significantly affects the total interest earned.
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Algebra
Formulas
Compound Interest Formula: A = P * (1 + r)^n
Total Interest Formula: Total Interest = A - P
Theorems
Compound Interest Calculation
Suitable Grade Level
Grades 10-12
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