3. I won R15 000.00 in the Lotto. I have decided to invest the money for three years so I can earn some interest. The bank has offered me 10% interest. Inow need to decide if I want to use my monthly simple interest payments or if should compound the interest. Please calculate the compound interest: Amount at the beginning of the 1st year Interest(10% of R Amount at the beginning of the 2nd year Interest(10% of R Amount at the beginning of the 3rd year Interest(10% of R Amount at the end of the 3rd year
3. I won R15 000.00 in the Lotto. I have decided to invest the money for three years so I can earn some interest. The bank has offered me 10% interest. Inow need to decide if I want to use my monthly simple interest payments or if should compound the interest. Please calculate the compound interest: Amount at the beginning of the 1st year Interest(10% of R Amount at the beginning of the 2nd year Interest(10% of R Amount at the beginning of the 3rd year Interest(10% of R Amount at the end of the 3rd year
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:I won R15 000.00 in the Lotto. I have decided to invest the money for three
years so I can earn some interest. The bank has offered me 10% interest. Inow
need to decide if I want to use my monthly simple interest payments or ifL
should compound the interest. Please calculate the compound interest:
3.
Amount at the beginning of the 1st year
Interest(10% of R
Amount at the beginning of the 2nd year
Interest(10% of R
Amount at the beginning of the 3rd year
Interest(10% of R
Amount at the end of the 3rd year
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