ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ryan invested $1, 000 in savings bonds. If the bonds earn 6.75% interest compounded annually, how much INTEREST will Ryan earn in 15 years?
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$1012.50
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$2174.50
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$1663.90
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$2663.90
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Explanation:
Detailed explanation-1: -Answer: $1, 000 invested today at 6% interest would be worth $1, 060 one year from now. Let us solve this step by step.
Detailed explanation-2: -488.86. Hence, Compound interest would be Rs. 488.86.
Detailed explanation-3: -Now Compound interest = A-P ⇒ Compound interest = Rs. 15972-Rs. 12000 = Rs. 3972.
Detailed explanation-4: -The compound interest on Rs. 16000 for 9 months at ‘20%‘ p.a, compounded quarterly is Rs. 2522.
There is 1 question to complete.