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Hannah invests R 6500 for 6 years. For the first 3 years, the interest rate is 12% per annum, compounded annually. She then withdraws R 4200. For the remaining 3 years, the interest rate is 8% per ann
Mathematics
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Step-by-step solution
4 stepsCalculate the amount in the account after the first three years.
The formula for compound interest is .
Given:- Principal () = R 6500
- Interest rate () = per annum
- Time () = 3 years
Subtract the withdrawal amount to find the new principal for the next period.
Hannah withdraws R 4200.
New principal () =Calculate the amount in the account at the end of the next three years (total six years).
Given:
- New principal () = R 4932.032
- Interest rate () = per annum
- Time () = 3 years
Round the final amount to two decimal places.
The amount in the account at the end of the six years is R 6212.94.
This matches option A.
The final answer is .
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