ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When their daughter was born, Bill and Suni invested $1000 for her education. Stacey is now 18 years old. The interest earned was compounded annually and the investment averaged 4.8% interest per year. Determine the value of the $1000 investment on Stacey’s 18th birthday.
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$2325.43
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$1864.00
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$1, 160, 675.66
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$1325.43
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Explanation:
Detailed explanation-1: -∴ Compound interest is ₹ 1698.58.
Detailed explanation-2: -Answer and Explanation: The correct answer is d) $1, 116.14.
Detailed explanation-3: -What is the future value of $1, 000 after five years at 8% per year? If compounding monthly, $1, 489.85 is the total compound interest value after five years.
Detailed explanation-4: -A borrower who pays 12% interest on their credit card (or any other form of loan that is charging compound interest) will double the amount they owe in six years.
There is 1 question to complete.