A person invests $1000 at a compound interest rate of 5% per annum. What will be
Practice Questions
Q1
A person invests $1000 at a compound interest rate of 5% per annum. What will be the amount after 2 years?
$1100.25
$1025
$1050
$1200
Questions & Step-by-Step Solutions
A person invests $1000 at a compound interest rate of 5% per annum. What will be the amount after 2 years?
Compound Interest – Understanding how compound interest works, including the formula and its components (principal, rate, time, and compounding frequency).
Exponents – Applying exponent rules to calculate the growth of the investment over time.
