- 1 Marks
Question
You recently won ₦50 million from the popular NTA show “Who wants to be a billionaire?” A financial expert counselled that you invest the money in a bank at 6% interest rate per annum. How much will you have at the end of ten years?
A. N88,550,000
B. N89,550,000
C. N90,550,000
D. N91,550,000
E. N92,550,000
Answer
Answer:
B
Explanation:
To calculate the future value of an investment using compound interest, the formula used is:
Where:
- FV = Future Value
- PV = Present Value (₦50,000,000)
- r = Interest Rate (6% or 0.06)
- n = Number of years (10)
Substituting the values: FV = 50,000,000 × 
FV=50,000,000 × 1.791 FV = 89,550,000
Thus, the future value after ten years is ₦89,550,000.
- Tags: Compound Interest, Financial Mathematics, Investment
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: MAY 2017
- Uploader: Kwame Aikins