BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS MATHEMATICS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A bank offers a 0.25% annual simple interest rate for a particular deposit. After a year 2, 500 pesos will be earned from 1 million pesos deposited. What is the interest?
A
1 Million
B
2500
C
0.25%
D
1 year
Explanation: 

Detailed explanation-1: -AI Recommended Answer: interest rate of 1% per annum, it will triple in size every three years.

Detailed explanation-2: -You can calculate the simple interest you’ll earn in a savings account by multiplying the account balance by the interest rate by the time period the money is in the account. Note that the interest in a savings account is money you earn, not money you pay. Here’s the simple interest formula: Interest = P x R x T.

Detailed explanation-3: -A Certificate of Deposit (also known as a CD, COD, or Time Account) is a financial product that usually pays a fixed interest rate for a set period of time, ranging from a few months to several years.

Detailed explanation-4: -Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from 4 to 7.

There is 1 question to complete.