ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$85
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$100
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$120
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None of the above
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Detailed explanation-1: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
Detailed explanation-2: -How much will an investment of $20, 000 be worth in the future? At the end of 20 years, your savings will have grown to $64, 143. You will have earned in $44, 143 in interest. How much will savings of $20, 000 grow over time with interest?
Detailed explanation-3: -Simply divide your APY by 12 (for each month of the year) to find the percent interest your account earns per month. For example: A 12% APY would give you a 1% monthly interest rate (12 divided by 12 is 1). A 1% APY would give you a 0.083% monthly interest rate (1 divided by 12 is 0.083).
Detailed explanation-4: -Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.