MATHEMATICS · Multi-part · CBSE · Mathematics · Fractions in Disguise · Fractions in Disguise
Problem
Brooke invested 4000 in an account that pays 3% p.a. interest compounded half-yearly for 6 years.
(1) Calculate the final value of the investment.
(2) How much interest did Brooke earn?
(3) Given that inflation averaged 3.2% per year over the investment period, find the real value of the investment.
(4) Discuss the effectiveness of the investment once inflation has been considered.