ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$1798.20
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$1932.14
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$171.11
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$1800
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Detailed explanation-1: -15000 at 5% per annum for two years is Rs 1500 and the amount after 2 years is Rs. 16500.
Detailed explanation-2: -Calculate Accrued Amount (Future Value FV) using A = P(1 + r/n)^nt. In this example we start with a principal investment of 10, 000 at a rate of 3% compounded quarterly (4 times a year) for 5 years. If you paste this correctly you should see the answer Accrued Amount (FV) = 11, 611.84 in cell B1.
Detailed explanation-3: -Detailed Solution The amount after 1 year will be principal for 2 nd year. Where P is principal, R is rate of interest and T is time. ∴ The compound interest for 2 years is Rs. 2464.
Detailed explanation-4: -Compound interest will be calculated by C.I = [P × (1+R100)n]-P. C.I = [15000 × (1+5100)5]-15000. C.I = [15000 × (1+120)5]-15000.