# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### COMPOUND INTEREST

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
If you put \$603 in a savings account that pays 9% simple interest for one year what is the amount of money you will have at the end of the three years?
 A \$657.27 B \$765.81 C \$162.81 D \$1628.10
Explanation:

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.

There is 1 question to complete.