ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal:£5000Interest Rate:3.75%Time:5 yearsCompounded Monthly
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£5, 420.31
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£6, 029.38
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£7, 657.59
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£8, 550.84
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Explanation:
Detailed explanation-1: -Compounded monthly, is the same as he got at 6% interest per annum for 3 years. Compounded annually. Therefore, compound interest is 955.08.
Detailed explanation-2: -Hence required amount=Rs. 18522.
Detailed explanation-3: -So, CI = Rs 6050-Rs 5000 = Rs. 1050.
Detailed explanation-4: -Your principal is the amount that you borrow from a lender. The interest is the cost of borrowing that money.
There is 1 question to complete.