BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Find the total amount in the account if the interest is compounded annually. $2750 at 8% for 3 years
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$66, 000
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$3, 410
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$6, 600
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$660
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Explanation:
Detailed explanation-1: -’Find the total amount of interest to the nearest cent if the interest $ comi unded annually. $2750at 8% for 2 years P-S2750 0.08 years Total interest =Accrued Amount $ $2750 =$ 457.60’
Detailed explanation-2: -Compound interest is calculated by multiplying the initial loan amount, or principal, by the one plus the annual interest rate raised to the number of compound periods minus one. This will leave you with the total sum of the loan including compound interest.
Detailed explanation-3: -Hence, the amount is 6298.56 rupees. That is, the amount Rs. 6298.56 to be paid at the end of 3 years on Rs. 5000 at 8% per annum compounded annually.
There is 1 question to complete.