ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Karla invested $1, 000 in savings bonds. If the bonds earn 6.75% interest compounded semi-annually, how much total will Karla earn in 15 years?
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$1, 584.62
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$2, 651.39
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$2, 706.86
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$1, 825.10
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Explanation:
Detailed explanation-1: -Karla will earn $2, 706.86 in 15 years.
Detailed explanation-2: -Answer: $1, 000 invested today at 6% interest would be worth $1, 060 one year from now. Let us solve this step by step.
Detailed explanation-3: -488.86. Hence, Compound interest would be Rs. 488.86.
Detailed explanation-4: -Ending Investment = Start Amount * (1 + Interest Rate) ^ n For daily compounding, the interest rate will be divided by 365, and n will be multiplied by 365, assuming 365 days in a year.
There is 1 question to complete.