ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Caiden earned $475 from mowing lawns last summer.He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?
|
|
$827.52 (Mr. Williams)
|
|
|
$831.10 (Mrs. Hoch)
|
|
|
$839.45 (Mr. Krajunus)
|
|
|
$846.80 (Ms. Palombo)
|
Explanation:
Detailed explanation-1: -Now Compound interest = A-P ⇒ Compound interest = Rs. 15972-Rs. 12000 = Rs. 3972.
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: -12. $734 at 12% for 3 months SOLUTION: The simple interest is $22.02.
There is 1 question to complete.