Problema Solution
A pension fund guarnantee a return of 4.5 percent a year. If I invest 30,000 per year for 20 years what would be my total value at the end of 20 years.
Answer provided by our tutors
if not compounded, simple interest = p x t x r /100
t = time =20
p = principal amt = 30000
r = interest =4.5
interest value = 30000 x 20 x 4.5 /100
= 27000
total return = 30000 + 27000 = 57000