ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$2, 372.40
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$237.24
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$2, 141.39
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$3, 197.60
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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: -If the interest per quarter is 4% (but interest is only compounded annually), then it will take (72 / 4) = 18 quarters or 4.5 years to double the principal.
Detailed explanation-3: -1) What is the amount of money that you’d have if you invested $50 at an interest rate of 6% compounded monthly after a period of 3 years? 06112.3 A=50 (1+-06) 12 $59.84 Page 8 Ex.
Detailed explanation-4: -488.86. Hence, Compound interest would be Rs. 488.86.