Answer to Question #242456 in Financial Math for mai

Question

Syazana inherits RM25 000 in April 2012. She invests the money at an interest rate of

2.7% per year. What is the value of her investment in April 2025?

Answer 1

Compound interest formula

$$A=P(1+\dfrac{r}{n})^{nt}$$

$P=RM25000$

$n=1$

$r=0.027$

$t=2025-2012=13$

$$A=25000(1+\dfrac{0.027}{1})^{1(13)}=35347.26$$

Her investment in April 2025 will be $RM35347.26$