Activity 4 Investing fixed amount compounded quarterly Andile won a prize of R2 000 for a crossword competition he entered. He decided to invest it for two years. The bank consultant gave him two options: Option 1: R2 000 at 3.3% p.a. compounded quarterly, leaving the money in the bank without making any withdrawals until the investment matures. or Option 2: R2 000 at 3.3% p.a. compounded quarterly, drawing the interest after every quarter and re-investing the initial amount of R2 000. Andile decides to take option 2. 1. What is the interest (%) paid to him after every quarter? 2. How many times a year will Andile receive a payout? 3. What amount will Andile receive from the bank after every 3 months? 4. If he leaves his investment without drawing anything, how much will his investn be worth after the first year? 5. What suggestions would you give Andile regarding his investment? Example Remember Mr Andrews? He had a motorbike accident and had to borrow R9 000 and But let's say that he pays​