ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bruno was given $2000 when he turned 3 years old. His parents invested it at a 2% compound interest rate annually . No deposits or withdrawls were made. Which expression can be used to determine how much money Bruno had in the account when he turned 16?
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2000(1+0.02)13
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2000(1-0.02)13
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2000(1+0.02)16
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2000(1-0.02)16
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Explanation:
Detailed explanation-1: -The money that should be required when he turned 16 is $2, 587 (approx).
Detailed explanation-2: -10000 (1+10100)3=Rs. 10000×1110×1110×1110=Rs. 13310C.I.
Detailed explanation-3: -62, 964. So, the correct answer is Rs. 62, 964”. Note: The interest can be either simple or compound.
Detailed explanation-4: -compounded, annually at the rate of 10% p.a. for 3 years is Rs 331. Q.
There is 1 question to complete.