Subjects finance

Savings Growth

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Savings Growth


1. **State the problem:** Mrs Kiran Kaur saved 50,000 RM on 1 March 2019 with an annual interest rate of 3.5%. The total savings after $t$ years is given by the formula $$50,000(1.035)^t$$. We need to find her total savings on 1 March 2025. 2. **Identify the time period:** From 1 March 2019 to 1 March 2025 is $$t = 2025 - 2019 = 6$$ years. 3. **Apply the formula:** Substitute $t=6$ into the formula: $$\text{Total savings} = 50,000(1.035)^6$$ 4. **Calculate the growth factor:** $$1.035^6 = 1.035 \times 1.035 \times 1.035 \times 1.035 \times 1.035 \times 1.035 \approx 1.23144$$ 5. **Calculate total savings:** $$50,000 \times 1.23144 = 61,572$$ 6. **Interpretation:** After 6 years, Mrs Kiran Kaur's total savings will be approximately 61,572 RM if she does not withdraw any money. **Final answer:** $$\boxed{61,572}$$ RM on 1 March 2025.