ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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 compounded annually mean?
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Principal or initial value, P
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Rate of interest, r
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Number of times interest is compounded, n
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Time, t
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Explanation:
Detailed explanation-1: -Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. 3.8% is written in the decimal form. Therefore 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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