ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Davy Crockett earned $10, 000 from his raccoon skin hat company. He deposited it into an account that earned 3% interest annually. How much interest did he earn after 4 years?
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$11, 255.09
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$1255.09
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$1200
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$11, 200
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Explanation:
Detailed explanation-1: -Example 1:If the difference between Simple Interest and Compound Interest on a certain sum of money in 2 years at 20 % p.a. is Rs. 800, then find the sum. (100/r)2 P = 800 X 10000/20*20 → P = 20000.
Detailed explanation-2: -Simple and compound interest are two ways of calculating interest: Simple interest is calculated on the original (principal) amount, whereas compound interest is calculated on the original amount and on the interest already accumulated on it.
There is 1 question to complete.