ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$100
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$1000
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$110
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None of the above
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Detailed explanation-1: -If you were to gain 10% annual interest on $100, for example, the total amount earned per year would be $10. At the end of the year, you’d have $110: the initial $100, plus $10 of interest. After two years, you’d have $120. After 20 years, you’d have $300.
Detailed explanation-2: -The principal amount is Rs 10, 000, the rate of interest is 10% and the number of years is six. You can calculate the simple interest as: A = 10, 000 (1+0.1*6) = Rs 16, 000. Interest = A – P = 16000 – 10000 = Rs 6, 000.
Detailed explanation-3: -Answer: The simple interest on a loan of $200 at 10 percent interest per year is $20.
Detailed explanation-4: -e R − 1. With 10% continuously compounding, the effective annual rate is e10%−1=10.52%. e 10 % − 1 = 10.52 % . At this rate, the value of $100 after 8 years is 100∗(1+10.52%)8=$222.55.
Detailed explanation-5: -Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.