ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Manuel borrowed $1, 500 from his bank and signed a contract to make monthly payments for one year at a monthly simple interest of 15%. How much total interest will Manuel pay on this loan?
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$2, 700
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$658
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$2, 250
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$270
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Explanation:
Detailed explanation-1: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
Detailed explanation-2: -you need to input details like the amount borrowed, interest rate, and loan tenure to calculate your monthly EMI. the formula used is: EMI = [p x r x (1+r)^n]/[(1+r)^n-1]
Detailed explanation-3: -For a daily interest rate, divide the annual rate by 360 (or 365, depending on your bank). For a quarterly rate, divide the annual rate by four. For a weekly rate, divide the annual rate by 52. 03-Jun-2022
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