General Mathematics Β· Unit 4 Β· Loans, investments and annuities 1 Β· Compound interest loans and investments
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A community sports club receives a grant of \$12{,}000 which is deposited into a special investment account. The account earns interest at 3.6% p.a. compounding quarterly. The club plans to withdraw the full balance after 5 years to fund new equipment. Refer to the table below showing the account parameters. Calculate the total amount of interest earned over the 5-year period.
A student opens a savings account with an initial deposit of $\$2{,}500$. The account earns interest at $3.6\%$ per annum compounding quarterly. Calculate the total amount in the account after $5$ years, giving your answer to the nearest cent.
A parent invests $5000 in an account earning 3.6% per annum, compounding quarterly. What is the total amount in the account after 5 years?
A student saves $2{,}500 by investing in a term deposit account that earns interest at 3.6% per annum, compounded quarterly. Calculate the total value of the investment after 5 years, giving your answer to the nearest cent.