ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Diego deposited $2, 000 into a savings account. How much will Diego have in his account after 7 months with 3¼% simple interest?
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$2455
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$455
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$37.92
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$2037.92
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Explanation:
Detailed explanation-1: -Simple interest on Rs. 2000 for 4 years is Rs. 400.
Detailed explanation-2: -Simple interest works in your favor when you’re a borrower because it keeps the overall amount that you pay lower than it would be with compound interest; however, it can work against you when you’re an investor because you’ll want your returns to compound as much as possible to get the most from your investment.
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