Question: If an amount of $1200 is invested at a compound interest rate of 5% per annum, what will be the total amount after 5 years?
Options:
$1530.00
$1500.00
$1550.00
$1600.00
Correct Answer: $1530.00
Solution:
Total Amount = 1200(1 + 0.05)^5 = 1200(1.27628156) = 1531.54
If an amount of $1200 is invested at a compound interest rate of 5% per annum, w
Practice Questions
Q1
If an amount of $1200 is invested at a compound interest rate of 5% per annum, what will be the total amount after 5 years?
$1530.00
$1500.00
$1550.00
$1600.00
Questions & Step-by-Step Solutions
If an amount of $1200 is invested at a compound interest rate of 5% per annum, what will be the total amount after 5 years?
Compound Interest – Understanding how compound interest works, including the formula for calculating the total amount after a certain number of years.
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