ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$375
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$42500
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$5375
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$37500
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Detailed explanation-1: -Here, we will find simple interest (SI) using the formula PRN100 where, P is principal amount i.e. Rs. 5000, R is rate of interest i.e. 5% and N is time period i.e. 2 years. Thus, simple interest is Rs. 500.
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: -⇒ Interest earned at the end of two years =5, 000×8×2100=₹800.
Detailed explanation-4: -Rs 6050. Q. The amount on Rs 5000 for 2 years at 10% per annum is: Q.