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The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested?
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The interest paid on the same sum yielding 3%, 4%, and 5% compound int...
Calculation of Average Yield Percent
1. Calculation of Interest
- Let's assume the principal sum is $100.
- The interest paid at 3% for 3 years = $100 * (1+0.03)^3 - $100 = $9.27
- The interest paid at 4% for 3 years = $100 * (1+0.04)^3 - $100 = $12.48
- The interest paid at 5% for 3 years = $100 * (1+0.05)^3 - $100 = $15.76
2. Calculation of Average Yield Percent
- Total interest earned = $9.27 + $12.48 + $15.76 = $37.51
- Average yield percent = Total interest earned / Total principal * 100
- Average yield percent = $37.51 / $300 * 100 = 12.50%
Therefore, the average yield percent on the total sum invested is 12.50%. This means that on average, the investment yielded 12.50% interest over the 3-year period.
1. Calculation of Interest
- Let's assume the principal sum is $100.
- The interest paid at 3% for 3 years = $100 * (1+0.03)^3 - $100 = $9.27
- The interest paid at 4% for 3 years = $100 * (1+0.04)^3 - $100 = $12.48
- The interest paid at 5% for 3 years = $100 * (1+0.05)^3 - $100 = $15.76
2. Calculation of Average Yield Percent
- Total interest earned = $9.27 + $12.48 + $15.76 = $37.51
- Average yield percent = Total interest earned / Total principal * 100
- Average yield percent = $37.51 / $300 * 100 = 12.50%
Therefore, the average yield percent on the total sum invested is 12.50%. This means that on average, the investment yielded 12.50% interest over the 3-year period.
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The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested?
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The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested?.
The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The interest paid on the same sum yielding 3%, 4%, and 5% compound interest for 3 consecutive year respectively. What is the average yield percent on the total sum invested?.
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