ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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4 years
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8 years
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5 years
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6 years
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Detailed explanation-1: -The time period such that interest earned was $55.20 on an investment of $230 has a rate of 3% will be 8 years.
Detailed explanation-2: -The end balance of an 8 year investment of $230 at a rate of 3% is $285.20.
Detailed explanation-3: -$2750at 8% for 2 years P-S2750 0.08 years Total interest =Accrued Amount $ $2750 =$ 457.60’
Detailed explanation-4: -The rule says that to find the number of years required to double your money at a given interest rate, you just divide the interest rate into 72. For example, if you want to know how long it will take to double your money at eight percent interest, divide 8 into 72 and get 9 years.
Detailed explanation-5: -Use the formula I = P x R x T and round your answers to the nearest cent. If you borrow $225 for eight years at an interest rate of 6%, how much interest will you pay? 7. $170.94 How much interest does a $407 investment earn at 6% over seven years?