BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal:$5000Interest Rate:3.75% Time:25 yearsCompounded Monthly State the future account balance.
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$12712.31
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$12, 749.30
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$12, 657.59
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$12550.84
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Explanation:
Detailed explanation-1: -So, CI = Rs 6050-Rs 5000 = Rs. 1050.
Detailed explanation-2: -The monthly compound interest formula is used to find the compound interest per month. The formula of monthly compound interest is: CI = P(1 + (r/12) )12t-P where, P is the principal amount, r is the interest rate in decimal form, and t is the time.
Detailed explanation-3: -⇒ CI = ₹ 7200−₹ 5000=₹ 2200. Q. The compound interest on a principal of Rs 5000 at the rate of 20% for 2 years is Rs.
Detailed explanation-4: -CI = A – P Here, A represents the new principal sum or the total amount of money after compounding period. P represents the original amount or initial amount. r is the annual interest rate.
There is 1 question to complete.