BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tell whether the given situation shows SIMPLE or COMPOUND interest.Diego borrowed P10, 000 from a lending institution at an annual rate of 6%. He paid a total interest of P2, 400 in 4 years.
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Simple
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Compound
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Explanation:
Detailed explanation-1: -₹10, 000 is borrowed for two years at the rate of 15% per annum and the interest compounded annually. = 10000 × ( )2 = 10000 × = 13225. ∴ The answer is Rs. 13225.
Detailed explanation-2: -The difference between the simple interest and the compound interest compounded annually at the rate of 12% per annum on Rs 6000 for two years will be: Rs. 86.4.
There is 1 question to complete.