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.Sara deposited in her bank account P50, 000 at an annual interest rate of 1% compounded yearly. She earned an interest of P2, 550.50 after 5 years.
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Simple
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Compound
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Explanation:
Detailed explanation-1: -About how many years will P100, 000 earn a compound interest of P50, 000 if the interest rate is 9% compounded quarterly? Explanation: 526.
Detailed explanation-2: -CI = A – P Here, A represents the new principal sum or the total amount of money after compounding period. P represents the original amount or initial amount. r is the annual interest rate.
Detailed explanation-3: -AI Recommended Answer: interest rate of 1% per annum, it will triple in size every three years.
There is 1 question to complete.