ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mr. Morgan invests $10, 000 into a savings account that earns 5.5% compounded annual interest. Which of the following statements is true?
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Mr. Morgan needs to keep the money in the savings account for 10 years to have over $20, 000.
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Mr. Morgan needs to keep the money in the savings account for 12 years to have over $20, 000.
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Mr. Morgan needs to keep the money in the savings account for 15 years to have over $20, 000.
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Mr. Morgan should take the money out of the savings account and place it under his bed at home.
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Explanation:
Detailed explanation-1: -I=10020000×2×5=Rs. 2, 000. Was this answer helpful?
Detailed explanation-2: -Hence, the amount will be Rs 13310.
Detailed explanation-3: -Simple Interest Formula Thus, if simple interest is charged at 5% on a $10, 000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10, 000 x 0.05 x 3 = $1, 500.
Detailed explanation-4: -Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13, 000.
There is 1 question to complete.