A sum of £500 is placed on deposit for a year at a rate of interest of 15%. Interest is paid at four equally spaced points of time throughout the year and is calculated such that the payment varies with the proportion of the year that has passed since the last payment. If all interest is left to compound, how much will be on deposit at the end of the year? a. £579.33 b. £515.00 c. £535.00 d. £874.50
A sum of £500 is placed on deposit for a year at a rate of interest of 15%. Interest is paid at four equally spaced points of time throughout the year and is calculated such that the payment varies with the proportion of the year that has passed since the last payment. If all interest is left to compound, how much will be on deposit at the end of the year? a. £579.33 b. £515.00 c. £535.00 d. £874.50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A sum of £500 is placed on deposit for a year at a rate of interest of 15%. Interest is paid at four equally spaced points of time throughout the year and is calculated such that the payment varies with the proportion of the year that has passed since the last payment. If all interest is left to compound, how much will be on deposit at the end of the year?
| a. |
£579.33 |
|
| b. |
£515.00 |
|
| c. |
£535.00 |
|
| d. |
£874.50 |
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