ECONOMICS
COMPOUND INTEREST
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Find the total amount in the account to the nearest cent if the interest is compounded annually. $2750 at 8% for 2 years

$2200.00


$3207.60


$8910.00


$2750

Explanation:
Detailed explanation1: ’Find the total amount of interest to the nearest cent if the interest $ comi unded annually. $2750at 8% for 2 years PS2750 0.08 years Total interest =Accrued Amount $ $2750 =$ 457.60’
Detailed explanation2: So, The Amount will be Rs. 2163.
Detailed explanation3: That is, the amount Rs. 2646 to be paid at the end of 2 years on Rs. 2400 at 5% per annum compounded annually. So, the correct answer is “2646”.
Detailed explanation4: Compound interest formulas Hence, if a twoyear savings account containing $1, 000 pays a 6% interest rate compounded daily, it will grow to $1, 127.49 at the end of two years.
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