ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPOUND INTEREST

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Jay’den earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. Jay’den wants to know his balance after 15 years?What does 3.8% represent?
A
Principal or initial value, P
B
Rate of interest, r
C
Number of times interest is compounded, n
D
Time, t
Explanation: 

Detailed explanation-1: -The balance after 15 year is $831.25 .

Detailed explanation-2: -Now Compound interest = A-P ⇒ Compound interest = Rs. 15972-Rs. 12000 = Rs. 3972.

Detailed explanation-3: -15625×2825×2825×2825= Rs. 21952C.

Detailed explanation-4: -= 4, 058. Was this answer helpful?

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