MATH SOLVE

7 months ago

Q:
# What is the amount of an investment of Q.300,000 after one year, if it is deposited in a bank account that pays 30% interest convertible bimonthly?

Accepted Solution

A:

The interest rate is 30% per year, which is 15% bimonthly.
Since the interest is compounded bimonthly, there are $$ \frac{12}{2}=6 $$ compounding periods in a year.
The formula for compound interest is:
$$ A=P(1+\frac{r}{m})^{nt} $$
where:
A is the future value of the investment
P is the principal amount
r is the interest rate per compounding period
m is the number of compounding periods per year
t is the number of years
In this case, we have:
A = the amount of the investment after one year
P = Q.300,000
r = 15%
m = 6
t = 1
So we can calculate the future value of the investment as follows:
$$ A=Q.300,000(1+\frac{15}{6})^6 $$
$$ =Q.347,287.50 $$
Therefore, the amount of the investment after one year will be:$$ Q.347,287.50 $$