ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Emilio borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?
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150
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192
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1350
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1392
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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: -Hence, at the end of 3 years, the simple interest is $787.5.
Detailed explanation-3: -Interest formula for simple interest: I = Prt where I is the total amount of interest accrued; over t time periods at a simple interest rate, r, and where the original amount invested or borrowed is P.
Detailed explanation-4: -How much interest is that? The simple interest formula is I=Prt. The P represents the principal.
There is 1 question to complete.