ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$5, 957.50
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$500.97
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$545.16
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$410.45
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Detailed explanation-1: -$3188, 32 invested into an account paying 9% compounded daily will accumulate to $5, 000 in five years.
Detailed explanation-2: -1 Expert Answer The better investment in the sense of more interest will be 9.0% compounded quarterly. 1. Future value = Principal x (1 + i)t when the interest is compounded annually, and investment will be multiplied by (1 + I)t, but in this case, t = 1, so the multiplier will be 1 + .
Detailed explanation-3: -Solution: We use the present value formula, where A is $20, 000, r is 6% or 0.06, n is 12, and t is 5 years. Approximately $14, 827.45 should be invested today in order to accumulate to $20, 000 in five years.
Detailed explanation-4: -The result is the number of years, approximately, it’ll take for your money to double. For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.