ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Jerry borrowed $4, 000 for 5 years at 6% simple interest rate. How much interest is that?
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$800
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$1, 000
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$1, 200
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$1, 500
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Explanation:
Detailed explanation-1: -The interest alfred receives is 4000(5×1006)=4000×10030=1200.
Detailed explanation-2: -Answer and Explanation: Alfred will receive the interest amount $ 1, 200 .
Detailed explanation-3: -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-4: -So, it will take 4 years for the principal of $25, 000 at a simple interest rate of 5% to become $30, 000.
There is 1 question to complete.