Kennedy won money in a radio contest 10 years ago. She put this money in a bank account that earned 2.9% interest compounded quarterly . She now has $4005.09 in the account. How much money did she originally win? (Hint:You are finding the value for P)

COMPOUND INTEREST

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	$4915.59
B	$5346.92
C	$2579.81
D	$3000.00

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.

Detailed explanation-2: -488.86. Hence, Compound interest would be Rs. 488.86.

Detailed explanation-3: -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-4: -The formula to convert simple interest to compound annual interest is (1 + R/N)N-1, where R is the simple interest rate, and N equals the number of times interest is compounded in a year.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPOUND INTEREST