Question

❤50 points❤

Maths SM ch.4 pg20 Q.2.
100 will become after 20 years at 5% p.a compound interest amount of

Explain in detail step by step ​

Answer 1

Compound interest is given by the equation:

A

f

=

A

0

(

1

+

r

100

)

n

where:

A

0

,

A

f

are the initial and final amounts of money, respectively

r

is the rate of compound interest

n

is the number of years passed

So, we get:

A

f

=

$

100

(

1

+

5

100

)

20

=

$

100

⋅

1.05

20

=

$

100

⋅

2.65

=

$

265

Therefore ans is 265.

Answer 2

Answer:

option c is the correct answer