ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Deana invested $1, 000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total money will Deana earn in 15 years?
|
|
$1, 584.62
|
|
|
$2, 651.39
|
|
|
$2, 706.86
|
|
|
$1, 825.10
|
Explanation:
Detailed explanation-1: -Answer: $1, 000 invested today at 6% interest would be worth $1, 060 one year from now. Let us solve this step by step.
Detailed explanation-2: -The formula to calculate compound interest is to add 1 to the interest rate in decimal form, raise this sum to the total number of compound periods, and multiply this solution by the principal amount. The original principal amount is subtracted from the resulting value.
Detailed explanation-3: -∴ Compound interest is ₹ 1698.58.
Detailed explanation-4: -488.86. Hence, Compound interest would be Rs. 488.86.
There is 1 question to complete.