2.1k views
4 votes
You deposit $1,000 for years at an interest rate of 2.0%.If the interest is compounded guardedly.How much money would you have at the end of four years in this situation?

1 Answer

4 votes
Principle(P)=$1000
Rate (r)=2%=0.02
Time=t=4 years
n=no of times the interest is compounded per year=4
Amount (A)=?
Then,
A=P{(1+r/n)}^(n×t)
=1000{1+0.02/4}^(4×4)
=1000×(1.005^16)
=1000 × 1.08307115
=1083.07115
=1083.07 (approx)

Thus at the end of 4 years the amount of money will be Rs 1083.070 approximately.

Hope this helps....
User Pklimczu
by
8.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories