ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$6827.52
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$6524.09
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$6039.45
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$6346.80
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Detailed explanation-1: -I=10020000×2×5=Rs. 2, 000. Was this answer helpful?
Detailed explanation-2: -If you deposit P4000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account after 5 years? * After 5 years there will be P3875.
Detailed explanation-3: -It is calculated by multiplying the first principal amount by one and adding the annual interest rate raised to the number of compound periods subtract one. The total initial amount of your loan is then subtracted from the resulting value. P is principal, I is the interest rate, n is the number of compounding periods.
Detailed explanation-4: -Cq = P [ (1+r)4*n – 1 ] The quarterly compounding formula is taken from the compounding formula. The only difference is that the rate of interest is raised 4*2 to reflect the quarterly computation of the interest.