What is the compound interest if $480 is invested for 12 years at 6% compounded continuously?
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It takes 3 years for the balance of account to be $ 221
<em><u>Solution:</u></em>
From given information,
Principal = $ 200
Rate of interest = 3.5 %
Amount after "n" years = $ 221
To find: number of years
In simple Interest,
Simple interest = amount earned - principal
Simple interest = 221 - 200 = 21
Thus simple interest earned is $ 21
<em><u>The formula for simple interest is given as:</u></em>
Where,
p is the principal
n is the number of years
r is the rate of interest per annum
Substituting the given values in formula,
Thus it takes 3 years for the balance of account to be $ 221
Answer:
D.
Step-by-step explanation:
