ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Find the simple interest earned:Principal $6, 000 Interest Rate 5% and time 6 years
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$190
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$200
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$180
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$1800
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Explanation:
Detailed explanation-1: -Simple interest is calculated with the following formula: S.I. = P × R × T, where P = Principal, R = Rate of Interest in % per annum, and T = Time, usually calculated as the number of years. The rate of interest is in percentage r% and is to be written as r/100.
Detailed explanation-2: -We have to find the principal. P = ? Let the principal be x. Hence, the principal is Rs 5000.
Detailed explanation-3: -15, 000 at the end of 5 years is Rs. 9, 750. Thus, interest incurred on Rs. 15000 = 15000 × 5 × 10 100 = Rs.
Detailed explanation-4: -The simple interest of a loan for $1, 000 with 5 percent interest after 3 years is $ 150.
There is 1 question to complete.