ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
You invest $55 at 10% compounded annually for 3 years. How much will your investment be worth in 3 years?
|
|
$7, 321
|
|
|
$36.79
|
|
|
$18.21
|
|
|
$73.21
|
Explanation:
Detailed explanation-1: -compounded, annually at the rate of 10% p.a. for 3 years is Rs 331. Q.
Detailed explanation-2: -Period (n) = 3 years∴ Amount = P (1+R100)n=Rs. 10000 (1+10100)3=Rs. 10000×1110×1110×1110=Rs. 13310C.I.
Detailed explanation-3: -It is calculated by multiplying the first principal amount by one and adding the annual interest rate raised to the number of compound periods subtract one. The total initial amount of your loan is then subtracted from the resulting value. P is principal, I is the interest rate, n is the number of compounding periods.
Detailed explanation-4: -Therefore, Compound interest on the given sum will be Rs. 3972.
There is 1 question to complete.