ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Paul deposits $4000 in a bank which pays a compound interest rate of 4% per year. How much will he have in 5 years.
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$4866.61
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$5628.40
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$6077.53
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$6326.60
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Explanation:
Detailed explanation-1: -So, the correct answer is “410 Rs.”.
Detailed explanation-2: -∴ Compound interest is Rs. 410.
Detailed explanation-3: -Hence, it will take 10 years for the sum of money to double itself with the rate of 10% per annum simple interest.
Detailed explanation-4: -So, the compound interest = Rs. 5, 227.20-Rs. 4, 000 = Rs. 1, 227.20.
There is 1 question to complete.