ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Kevin invested $720 for 5 years at 3% per annum compound yearly. Find the total interest.
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$834.67
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$720
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$42.67
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$114.67
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Explanation:
Detailed explanation-1: -Thus, the final amount received at hand is Rs. 22, 050.
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: -Compounded monthly, is the same as he got at 6% interest per annum for 3 years. Compounded annually. Therefore, compound interest is 955.08.
There is 1 question to complete.