ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Determine the balance in the account if you deposited $4, 000 at an interest rate of 3.4% compounded quarterly for three years.
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$4422.03
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$4427.62
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$4428.90
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$4429.51
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Explanation:
Detailed explanation-1: -Detailed Solution ∴ Compound interest is Rs. 410.
Detailed explanation-2: -Rs 4505.96 money will be in the account after 2 years . Where P is the principle value, r is the rate in the decimal form and n is the time in years. 6% is written in the decimal form . Therefore Rs 4505.96 money will be in the account after 2 years .
Detailed explanation-3: -So, the correct answer is “410 Rs.”.
Detailed explanation-4: -Simple Interest Formula Thus, if simple interest is charged at 5% on a $10, 000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10, 000 x 0.05 x 3 = $1, 500.
There is 1 question to complete.