ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Emily puts $300 in a bank account at Texas Credit Union earning 4% interest. How much will she earn in interest in 1 year? (simple interest)
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4
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8
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12
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16
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Explanation:
Detailed explanation-1: -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."
Detailed explanation-2: -A represents the new principal sum or the total amount of money after compounding period. P represents the original amount or initial amount. r is the annual interest rate. n represents the compounding frequency or the number of times interest is compounded in a year.
Detailed explanation-3: -Which of the following actions would enable him to earn MORE interest? ASelecting an account with a high interest rate.
There is 1 question to complete.