Please solve the following questions on compound interest?
(a) How much an investment of #€5000# will become in #7# years if compounded every quarter at #4.5%# per annum?
(b) Carla invested #$7000# compounded annually and it doubled in #10# years. What is the rate of interest (up to #2dp# )?
(a) How much an investment of
(b) Carla invested
1 Answer
(a)
Explanation:
A principal amount of
The reason for this is follows. Suppose interest is compounded quarterly i.e.
(a) Here interest rate is
=
(b) As Carla has invested
or
or
or
or