Answer :
Answer:
C. 639.45 AED
Step-by-step explanation:
Principal = AED 300
Compound interest = 3.5%
Unknown:
Amount of the investment after 22yrs = ?
Solution:
Compound interest is simply interest on interest.
The formula is given as;
A = P(1 + [tex]\frac{r}{n})^{nt}[/tex]
where A is the final amount
P = initial principal
r = interest rate
n = number of years
Input the parameters and solve;
A = 300 (1 + [tex]\frac{0.035}{1} )^{22 x 1}[/tex]
A = 639.45
So the amount of investmet is AED 639.45