ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Elizabeth has $20 in a savings account. The interest rate is 5%, compounded annually.Use the formula B = p(1 + r)t, where B is the balance (final amount), p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.
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$2.00
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$2.05
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$2.10
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$2.50
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Explanation:
Detailed explanation-1: -Compound interest is the interest you earn on interest. This can be illustrated by using basic math: if you have $100 and it earns 5% interest each year, you’ll have $105 at the end of the first year. At the end of the second year, you’ll have $110.25.
Detailed explanation-2: -28, 800. Compound Interest C.I. = Amount-Principal = 28, 800-20, 000 = Rs. 8, 800.
Detailed explanation-3: -Find the compound interest on Rs. 10, 000 at 20% per annum for 6 months. compounded quarterly. = 1025.
Detailed explanation-4: -On what priniciple will the compound interest at 5% per annum for 2years compounded annually be Rs164.
There is 1 question to complete.