Problem involving Simple and Compound Interest

Problem involving Simple and Compound Interest

Secondary 3
  1. Peter deposits \(\$7680\) in a fund that pays compound interest of \(3.35\%\) per annum,
    compounded half-yearly.
    Calculate the total amount of money that Peter will have in the fund at the end of five years.
  2. At the end of five years, Peter withdrew \(\$6500\) from the fund and invested this
    amount in a bank which offered simple interest rate of \(4.8\%\) per annum.
    Find the minimum number of full years he had to leave the money in a bank in order for it to be more than \(\$12000\).

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Answer:(i) \(\$9\,067.82\). (ii) \(18\) years.

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