Multiple choice

If $600$ dollars is deposited in a bank account for $4$ years at $8$% per annum . Calculate interest using compound interest formula.

  1. $216$
  2. $216.3$
  3. $220.6$
  4. $224.8$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A = P(1 + r/100)^n = 600(1 + 0.08)^4 = 600(1.36048896) = 816.29. Interest = 816.29 - 600 = 216.29, which rounds to 216.3.

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