Question 8 5 pts You invest $1 at a 10 percent interest rate for 50 years....

Question

Question

Answer 1

Answer #1

According to the question,

It is not given that whether simple interest or compound interest needs to apply.

So as per simple interest,

SI= PTR/100

= $1*50*10/100

= $ 5

Amount A= P+SI= $1+$5=$6

As per compound interest,

A= P(1+R/100)^n

= $1(1+10/100)^50

=$1(1.01)^50

=$1*1.6446

=$1.6446 =$2 (rounded to nearest integer)

Hence according to compound interest he will receive $2 after 50 years.

All the best for your exam!

Answer 2

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