ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How much interest will be earned for principal of $2, 000 at and 8% rate for 5 years.
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$160
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$800
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$2, 800
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$2, 160
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Explanation:
Detailed explanation-1: -The simple interest be 2/5 of the principal at 8 percent per annum. ∴ The time is 5 years.
Detailed explanation-2: -SI=2000×2×8/100. SI=4000×8/100. SI=32000/100. SI=₹320.
Detailed explanation-3: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
Detailed explanation-4: -Hence, the simple interest as per given information is Rupees 50.
There is 1 question to complete.