BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Steve deposited$5, 000 in a savings account that pays 4% interest compounded annually. Whichequation could be used to find the value of the account after 3 years?
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A = 5, 000(1 + 4)3
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A = 5, 000(1 + 0.04)3
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A = 5, 000(1 + 0.4) x 3
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A = 5, 000(0.04)3
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Explanation:
Detailed explanation-1: -Therefore, the compound interest is Rs. 624.32 on Rs. 5000 if it is compounded half yearly for 1 year 6 months at 8 % per annum.
Detailed explanation-2: -Compounded monthly, is the same as he got at 6% interest per annum for 3 years. Compounded annually. Therefore, compound interest is 955.08.
There is 1 question to complete.