ECONOMICS
SAVING AND INVESTING
Question
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$1.10449


$3, 313.47


$3, 313.46


$313.47

Detailed explanation1: I=10020000×2×5=Rs. 2, 000. Was this answer helpful?
Detailed explanation2: In savings accounts, interest can be compounded, either daily, monthly, or quarterly, and you earn interest on the interest earned up to that point. The more frequently interest is added to your balance, the faster your savings will grow.
Detailed explanation3: A compound interest account pays interest on the account’s principal balance and any interest it had previously accrued. Because higher principals net higher returns, and higher returns then add to those principals, growth from compounding becomes progressively stronger with time.
Detailed explanation4: 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 oneyear time periods).