ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Andy invests $500 into an account with 4.8% interest, compounded monthly. How much will be in the account in 10 years?
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$799.06
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$520.36
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$807.26
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$877.61
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Explanation:
Detailed explanation-1: -You would need to deposit $7007.08 to have $12000 in 6 years.
Detailed explanation-2: -If the interest is compounded monthly, n is 12. This is used for interest which is compounded continuously.
Detailed explanation-3: -Compound interest, can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.
Detailed explanation-4: -Expert-Verified Answer FV= 12000, r = 0.09, n = 12, and t = 6.
There is 1 question to complete.