ECONOMICS
COMPOUND INTEREST
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Question
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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?
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A = 5, 000(1 + 4)3
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A = 5, 000(1 + 0.04)3
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A = 5, 000(1 + 0.4) x 3
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A = 5, 000(0.04)3
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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: -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.