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: -Hence, the simple interest as per given information is Rupees 50.
Detailed explanation-2: -In what time will the simple interest on 500 at 6% be equal to the interest on ₹540 for 8 yearsat 5%? Ans. 7.2 years)
Detailed explanation-3: -Therefore, it will take 50 years to get the double amount at a simple interest rate 2 % per annum.
There is 1 question to complete.