ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Audi’s parents put $1, 500 in her bank account for college tuition. At a compound interest rate of 8%, what will be the balance after 18 years?
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$2160
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$3300
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$4494.03
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$5994.03
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Explanation:
Detailed explanation-1: -So, The Amount will be Rs. 2163.
Detailed explanation-2: -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-3: -Answer: Approximately 13.5 years to triple.
Detailed explanation-4: -The compound interest formula is ((P*(1+i)^n)-P), where P is the principal, i is the annual interest rate, and n is the number of periods.
There is 1 question to complete.