ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$250.78
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$690.78
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$1, 130
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$940.78
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Detailed explanation-1: -Trivia (11) When Andy tells the town council how much the town of Mayberry owes Frank Myers, he says the amount is $349, 119.27. This is the exact amount to the penny that would be owed on a $100 bond accruing 8.5% interest compounded annually over 100 years.
Detailed explanation-2: -On what sum will the compound interest at 5% per annum for 2 years compounded annually be Rs 164? Hence, Principal = Rs. 1600.
Detailed explanation-3: -100 at the rate of 10% per annum, compounded annually for 2 years. The amount he has to pay after 2 years is Rs. 121.
Detailed explanation-4: -What is the main difference between simple interest and compound interest? Simple interest is computed on the principal amount or loan amount whereas compound interest is computed based on the principal amount as well as the interest accumulated for a certain period or previous period.