A teacher invests GH₵ 2,000 in a savings cooperative yielding 10% compound interest compounded annually. What is the total value after 2 years?
Answer and explanation
Correct answer: A. GH₵ 2,420.00
- Step 1: Compound amount formula: A = P(1 + r)^n = 2,000 (1 + 0.10)^2. Step 2. Calculate: 2,000 (1.10)^2 = 2,000 1.21 = GH₵ 2,420.00. Answer: GH₵ 2,420.00. Why not the others:* GH₵ 2,400.00 is simple interest (2,000 + 400); GH₵ 2,200.00 is value after only 1 year; GH₵ 2,500.00 is an estimate.
Practise more Number Operations, Proportions and Pre-algebra.
Free questions with an explanation for every one, and full timed Ghana Teacher Licensure Examination mock tests.
More Number Operations, Proportions and Pre-algebra questions
- A school received a capitation grant of GH₵ 24,000. If 3/8 was spent on teaching learning materials, how much was spent on TLMs?
- In a school of 600 students, the ratio of boys to girls is 7 : 5. How many girls are enrolled in the school?
- A teacher earns a gross monthly salary of GH₵ 3,200. If 5.5% is deducted for SSNIT pension, what is the SSNIT deduction?
- The pass rate in an annual district exam rose from 64% to 80%. What was the percentage increase in the pass rate?
- Solve for k in the proportional equation: 3 / 7 = k / 56.
- If 12 teachers can complete grading an exam cohort in 6 hours, how many hours will 9 teachers take at the same rate?