ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Your 6 year investment of $40, 000 at 14% interest compounded annually is worth how much now?
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$47, 798.90
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$87, 798.90
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$127, 798
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$7, 798
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Explanation:
Detailed explanation-1: -The compound interest on ₹40, 000 at 6% per annum is ₹4, 944.
Detailed explanation-2: -64=32% quarteralyPeriod (n) = 6 months = 2 quaters∴ Amount = P (1+R100)n=Rs. 40000 (1+32×100)2=Rs. 40000×203200×203200=Rs. 41209C.I.
Detailed explanation-3: -= 41209 Rs. therefore compound interest is 1209 Rs.
Detailed explanation-4: -Hence, it is worth $283.70, when $200 is invested at 6% interest compounded annually, after 6 years.
There is 1 question to complete.