BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Beyonce wanted to buy a hot tub and borrows $7, 400 from a bank with an interest rate of 10.5% SIMPLE interest. If she is able to pay it back in 1/4 of a year how much does she have to pay back total?
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$7, 594.25
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$7710.80
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$194.25
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$26, 825.00
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Explanation:
Detailed explanation-1: -SIMPLE INTEREST PROBLEMS Problem 1: A person deposits $5, 000 in a bank account which pays 6% simple interest per year. Find the value of his deposit after $5, 000 years. = () () () =+ = ($5, 000) (4) (0.06) = $5, 000 + $1200 = $1200 = $, Therefore, the value of his deposit after 4 years is $6, 200.
Detailed explanation-2: -We have to find the principal amount for loan earned interest is 3500 with annual rate of 10% for 5 years. Hence, the principal amount for the loan is 7000.
Detailed explanation-3: -Simple Interest Formula To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time."
There is 1 question to complete.