ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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J.J. earned $475 from holding a football camp last summer. He deposited this money in an account that pays an interest rate of 3.8% compounded annually. What will be his balance after 15 years?
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$827.52
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$831.10
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$839.45
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$846.80
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Explanation:
Detailed explanation-1: -Now Compound interest = A-P ⇒ Compound interest = Rs. 15972-Rs. 12000 = Rs. 3972.
Detailed explanation-2: -The formula to calculate the amount when principal is compounded annually is given by A=P×(1+R100)n.
Detailed explanation-3: -The sum of money set aside on which interest is paid is called principal.
Detailed explanation-4: -Compound interest is the interest on savings calculated on both the initial principal and the accumulated interest from previous periods. more. Annual Percentage Rate (APR): What It Means and How It Works.
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