ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Compounded Continuously an investment of $400 at a rate of 35% for 2 years
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$280
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$680
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$1, 034.47
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$805.50
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Explanation:
Detailed explanation-1: -Answer: Approximately 13.5 years to triple.
Detailed explanation-2: -According to the Rule of 72, it would take about 14.4 years to double your money at 5% per year.
Detailed explanation-3: -What is the answer? Higher rates are always better. Compounding more often is always better. So, 12% compounded annually is worse than 15% compounded annually is worse than 15% compounded monthly.
Detailed explanation-4: -When the amount compounds daily, it means that the amount compounds 365 times in a year. i.e., n = 365.
There is 1 question to complete.