Calicut ate the final amount earned on a R2500 investment at a rate of 3% compound interest per year for half a year.
The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the amount of money accumulated after n years, including interest.
P = the principal amount (the initial amount of money invested)
r = annual interest rate (in decimal)
n = number of times that interest is compounded per year
t = time the money is invested for in years.
Given:
P = R2500
r = 3% = 0.03
n = 1 (as compounded annually)
t = 0.5 years
Plugging in the values, we get:
A = 2500(1 + 0.03/1)^(1*0.5)
A = 2500(1 + 0.03)^0.5
A = 2500(1.03)^0.5
A = 2500(1.015)
A = 2537.50
Therefore, Calicut earned a total of R2537.50 on a R2500 investment at a rate of 3% compound interest per year for half a year.