ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$657.27
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$765.81
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$162.81
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$1628.10
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Detailed explanation-1: -$657.27 If you put $603 in a savings account that pays 9% for one year what is the amount of money you will have at the end of the one year? 2. $96.12 How much interest is earned on a principal of $267 invested at an interest rate of 6% for six years?
Detailed explanation-2: -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.” This equation is the simplest way of calculating interest.
Detailed explanation-3: -$170.94 How much interest does a $407 investment earn at 6% over seven years? 9. $64.60 How much interest is earned on a principal of $646 invested at an interest rate of 5% for two years?
Detailed explanation-4: -"How much interest does a $318 investment earn at 9 percent over one year?” Explain to students that the answer would be $28.62 because $318 x 9 percent is the same as $318 x 0.09, which equals $28.62.
Detailed explanation-5: -Answer: the simple interest is 63, and total amount after 2 years is 513.