ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Find the compound interest:Principal:$1735Interest Rate:0.8%Time:1 year
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$1, 388
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$138.80
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$13.88
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None of the answers are correct.
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Explanation:
Detailed explanation-1: -Compound interest, can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.
Detailed explanation-2: -Compound interest = ₹ 11109-₹ 8000 = ₹ 3109. Q. Find compound interest on Rs. 8000 at 15% per annum for 2 years 4 months, compounded annually.
Detailed explanation-3: -8820. Hence, it takes 2 years for the amount Rs. 8000 to change to Rs. 8820 when it is compounded at the rate of 5 % annually.
There is 1 question to complete.