ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Emilio invests £1200 in a bank with 8% simple interest per year. How much the future value will be in 2 years?
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£150
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£192
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£1350
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£1392
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Explanation:
Detailed explanation-1: -Given P = 1200, R = 8%, Amount = 1200+1200 = 2400.
Detailed explanation-2: -The result is the number of years, approximately, it’ll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
Detailed explanation-3: -Expert-Verified Answer. Simple interest is Rs 160 on Rs 1000 for 2 years at 8% per annum.
There is 1 question to complete.