ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You invested $1, 900 at 4% interest compounded annually for 3 years. How much interest did you earn in 3 years? find A first then Interest (I= A-P)
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$2, 372.40
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$237.24
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$2, 137.24
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$3, 197.60
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Explanation:
Detailed explanation-1: -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-2: -Thus, the compound interest on Rs. 12000 at 5 % p.a. for 3 years will be Rs. 1891.5.
Detailed explanation-3: -The total amount when Rs. 10, 800 for 3 years at 12.5% per annum is compounded annually is Rs. 15377.343. This is the required answer.
There is 1 question to complete.