# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### COMPOUND INTEREST

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Steve deposited\$5, 000 in a savings account that pays 4% interest compounded annually. Whichequation could be used to find the value of the account after 3 years?
 A A = 5, 000(1 + 4)3 B A = 5, 000(1 + 0.04)3 C A = 5, 000(1 + 0.4) x 3 D A = 5, 000(0.04)3
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: -35, 400. here. Stay updated with the Quantitative Aptitude questions & answers with Testbook. Know more about Interest and ace the concept of Compound Interest.

Detailed explanation-3: -I=₹ 1655. Q. Calculate the compound interest on a sum of ₹ 5000 in 1.5 years when interest is compounded half-yearly at the rate 20% of per annum. Q.

Detailed explanation-4: -So, CI = Rs 6050-Rs 5000 = Rs. 1050.

There is 1 question to complete.