ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is the return on investment for a deposit of $5, 000 compounded annually at an interest rate of 4% for 20 years?
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$ 5, 955.62
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$ 10, 955.62
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$ 4, 872.68
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$ 9, 872.68
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Explanation:
Detailed explanation-1: -An investment of $1, 000 made today will be worth $1, 480.24 in five years at interest rate of 8% compounded semi-annually.
Detailed explanation-2: -Summary: The future value of $10, 000 on deposit for 2 years at 6% simple interest is $11200.
Detailed explanation-3: -Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13, 000.
Detailed explanation-4: -The future value of $10, 000 with 6 % interest after 5 years at simple interest will be $ 13, 000.
There is 1 question to complete.