ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Garrisondeposited $500 in an account that earns 5% annual interest compounded annually. If he makes no withdrawals or deposits, howmuch interest will the account earn after 4 years?
|
|
$600
|
|
|
$100
|
|
|
$607.75
|
|
|
$107.75
|
Explanation:
Detailed explanation-1: -The calculated value of the accumulated amount after 3 years is $134.49.
Detailed explanation-2: -On what sum will the compound interest at 5% per annum for 2 years compounded annually be Rs 164? Hence, Principal = Rs. 1600.
Detailed explanation-3: -Thus, the required sum is Rs 1, 600.
Detailed explanation-4: -Q. The formula to calculate the amount when principal is compounded annually is given by A=P×(1+R100)n. Q. By using the formula, find the amount and compound interest on: In how many years will Rs 1800 amount to Rs 2178 at 10% per annum when compounded annually ?
There is 1 question to complete.