ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Julie borrowed $3, 500 for 3 years at 71/2% simple interest rate. How much INTEREST will Julie have to pay?
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$812.50
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$787.50
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$810.00
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$635.00
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Explanation:
Detailed explanation-1: -Expert-Verified Answer. Hence, at the end of 3 years, the simple interest is $787.5.
Detailed explanation-2: -Detailed Solution 500/-for 3 years at simple interest at 5% per annum. ∴ The amount is Rs. 575.
Detailed explanation-3: -Hence, the simple interest as per given information is Rupees 50.
Detailed explanation-4: -Rate = 5 % p.a. Hence, the simple interest on Rs 2500 for 3years at 5%p.a is Rs. 375.
Detailed explanation-5: -Simple Interest Formula 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.
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