Problem 8

At the end of each month Rita deposits RM300 in an account that pays 5%. What will the final amount
be in 4 years?

0.05
R=300 ; i= ；n=12× 4=48
12

R [ ( 1+i )n−1 ]
S=
i
48

S=
[(
300 1+ ( ) )−1]
0.05
12

( 0.05
12 )

S=15904.47
 The final amount RM 15904.47 will be in 4 years.