Mrs. Corona has $6500 to invest. She deposited $3, 000 in a savings account that pays her interest compounded annually. She deposited $3, 500 in a saving account that pays her simple interest. Both accounts have the same interest rate of 2.5%. What is the combined total of both accounts at the end of 4 years?

COMPOUND INTEREST

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

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

A	$7150.00
B	$3311.44
C	$3850.00
D	7161.44

Explanation:

Detailed explanation-1: -Compound interest is the interest on a deposit calculated based on both the initial principal and the accumulated interest from previous periods. 1. Or, more simply put, compound interest is interest you earn on interest . You can compound interest on different frequency schedules such as daily, monthly or annually.

Detailed explanation-2: -Compound interest is calculated by multiplying the initial loan amount, or principal, by the one plus the annual interest rate raised to the number of compound periods minus one. This will leave you with the total sum of the loan including compound interest.

Detailed explanation-3: -About how many years will P100, 000 earn a compound interest of P50, 000 if the interest rate is 9% compounded quarterly? Explanation: 526.

Detailed explanation-4: -488.86. Hence, Compound interest would be Rs. 488.86.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPOUND INTEREST