ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Justin needs a bike and borrows $1200 from a bank with 8% simple interest per year. How much will he have to pay back total in 2 years?
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$150
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$192
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$1350
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$1392
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Explanation:
Detailed explanation-1: -Detailed Solution. ∴ The rate is 10%.
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: -The compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate is $ 33.1.
There is 1 question to complete.