ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rebecca invested $200 in a savings account that had a rate of 20% that compounds annually. If Rebecca puts the money in when she is 20 and takes it out when he is 60, how much money will be in his account rounded to the nearest dollar?
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$29395
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$293954.31
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$293954
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$2939
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Explanation:
Detailed explanation-1: -Q. The formula to calculate the amount when principal is compounded annually is given by A=P×(1+R100)n. Q. By using the formula, find the amount and compound interest on: In how many years will Rs 1800 amount to Rs 2178 at 10% per annum when compounded annually ?
Detailed explanation-2: -∴ Rate %=41.42% half yearly and 82.84% p.a.
Detailed explanation-3: -You can also run it backwards: if you want to double your money in six years, just divide 6 into 72 to find that it will require an interest rate of about 12 percent.
Detailed explanation-4: -28, 800. Compound Interest C.I. = Amount-Principal = 28, 800-20, 000 = Rs. 8, 800.
There is 1 question to complete.