ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Edwin borrowed $4, 500 for 2 years from Bank of America and had to pay $630 simple interest at the end of that time. What rate of interest did he pay?
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6%
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7%
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8%
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9%
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Explanation:
Detailed explanation-1: -Therefore, at 6% rate per annum the money 4500willbecome 5040 after 2 years.
Detailed explanation-2: -Answer: the simple interest is 63, and total amount after 2 years is 513.
Detailed explanation-3: -SI = (P x R x T) / 100 SI = Simple Interest. P = Principal amount (invested or borrowed) R = Rate of interest. T = Time period (investment or loan repayment)
Detailed explanation-4: -Therefore, it will take 50 years to get the double amount at a simple interest rate 2 % per annum.
There is 1 question to complete.