ECONOMICS
COMPOUND INTEREST
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Emilio borrows $1200 from a bank with 8% simple interest per year. How much interest will he have to pay back after 2 years?
|
|
$150
|
|
|
$192
|
|
|
$1350
|
|
|
$1392
|
Explanation:
Detailed explanation-1: -Therefore, it will take 50 years to get the double amount at a simple interest rate 2 % per annum.
Detailed explanation-2: -r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest.
Detailed explanation-3: -How much interest is that? The simple interest formula is I=Prt. The P represents the principal.
Detailed explanation-4: -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."
There is 1 question to complete.