ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Kennedy won $3, 000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly, how much interest will she earn in 10 years?
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$915.59 Rome
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$933.28 Sydney
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$979.81 Dublin
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$1, 005.09 Paris
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Explanation:
Detailed explanation-1: -The amount that she earned in 10 years is $4, 005.09. Given that, Kennedy won $3, 000 from a radio contest. If she puts this money in a bank account that earns 2.9% interest compounded quarterly.
Detailed explanation-2: -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.
Detailed explanation-3: -488.86. Hence, Compound interest would be Rs. 488.86.
There is 1 question to complete.