What will be the value of an investment of present value £200 at compound interest of 10 per cent after 2 years?
A) £180
B) £220
C) £242
D) £158

Question

Quizplus · Accepted Answer

Using the compound interest formula A = P(1+r)^t, where A is the final value, P is the present value, r is the interest rate, and t is the time in years, we can calculate:
A = 200(1+0.1)^2
A = 200(1.1)^2
A = 200(1.21)
A = 242
Therefore, after 2 years at 10% compound interest, the investment will be worth £242.

What Will Be the Value of an Investment of Present