ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$3, 853.87
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$3, 917.55
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$3, 472
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$16, 253.87
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Detailed explanation-1: -You can calculate your total interest by using this formula: Principal loan amount x interest rate x loan term = interest.
Detailed explanation-2: -Interest on Loan = P * r * t where, P = Outstanding principal sum. r = Rate of interest. t = Tenure of loan / deposit.
Detailed explanation-3: -Calculating EMI has a Simple Formula, Which is As Follows: EMI = (P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]. Here, P is the original loan amount or principal, R is the rate of interest that is applicable per annum and N is the number of monthly installments/ loan tenure.
Detailed explanation-4: -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."