ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$772
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$77.20
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$741.12
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$802.88
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Detailed explanation-1: -$772 How much principal must be invested to earn $30.88 in one year at an interest rate of 4%? 3. $566.72 If you invest $368 at an interest rate of 6%, how much money will you have after nine years?
Detailed explanation-2: -six years How long must $217 be invested at a rate of 6% to earn $78.12 in interest? 2. $100.98 How much interest is earned on a principal of $374 invested at an interest rate of 3% for nine years? 3.
Detailed explanation-3: -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-4: -∴ The simple interest on 7, 500 at 8% per annum per 1 year 6 months is Rs. 900.
Detailed explanation-5: -According to the Rule of 72, it would take about 14.4 years to double your money at 5% per year.