Question: 5. A businesswoman invests Rs. 350,000.00 in a fixed deposit offering 6% interest compounded yearly. c) Find the total amount of money she would have at the end of 8 years. d) Briefly explain the technique you used to solve (a).

1. **State the problem:** A businesswoman invests 350000 at an interest rate of 6% compounded yearly. We need to find the total amount after 8 years. 2. **Formula used:** The formula for compound interest is: $$ A = P \left(1 + \frac{r}{n}\right)^{nt} $$ where: - $A$ is the amount of money accumulated after $t$ years, including interest. - $P$ is the principal amount (initial investment). - $r$ is the annual interest rate (decimal). - $n$ is the number of times interest is compounded per year. - $t$ is the time the money is invested for in years. 3. **Given values:** - $P = 350000$ - $r = 0.06$ (6%) - $n = 1$ (compounded yearly) - $t = 8$ 4. **Calculate the amount:** $$ A = 350000 \left(1 + \frac{0.06}{1}\right)^{1 \times 8} = 350000 \left(1 + 0.06\right)^8 = 350000 \times 1.06^8 $$ 5. **Calculate $1.06^8$:** $$ 1.06^8 = 1.593848 $$ 6. **Multiply to find $A$:** $$ A = 350000 \times 1.593848 = 557846.8 $$ 7. **Final answer:** The total amount after 8 years is approximately $557846.8$. 8. **Explanation of technique:** The technique used is compound interest calculation, where interest is added to the principal yearly, and the next year's interest is calculated on the new total. This causes the investment to grow exponentially rather than linearly.