ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Jonas put $4500 in a retirement account that offers 8% interest compounded annually. Jonas will not make any additional deposits or withdrawals. Which amount is closest to the interest Jonas will have earned at the end of 10 years?
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$3600.00
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$360.00
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$5215.16
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373.24
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Explanation:
Detailed explanation-1: -Solution:-We are given with time as 9 months which we need to convert into years. Therefore the interest after 9 months if the interest is compounded quarterly will be Rs. 60.9.
Detailed explanation-2: -Compound interest =Rs. 236. 40. Was this answer helpful?
Detailed explanation-3: -I=10020000×2×5=Rs. 2, 000. Was this answer helpful?
Detailed explanation-4: -Compound interest, can be calculated using the formula FV = P*(1+R/N)^(N*T), where FV is the future value of the loan or investment, P is the initial principal amount, R is the annual interest rate, N represents the number of times interest is compounded per year, and T represents time in years.
There is 1 question to complete.