ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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3.25% annual simple interest for 18 months
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3.5% annual simple interest for 24 months
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3.75% annual simple interest for 30 months
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4% annual simple interest for 36 months
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Detailed explanation-1: -What is the simple interest on a Php500 loan at 2.5% interest to be paid at the end of 6 months? I= prt p=Php500, r=2.5 or 0.025 and, t= 6months or 6/12 or 2 =(Php500) (0.025)(2) =php25 The simple interest is Php25 C.
Detailed explanation-2: -To calculate simple interest, the formula used is (P x r x t)/100 where P, r, and t stands for principal amount, rate of interest and tenure of the deposit in years.
Detailed explanation-3: -You can calculate your total interest by using this formula: Principal loan amount x interest rate x loan term = interest.
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.” This equation is the simplest way of calculating interest.