ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$7.50
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$26.25
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$87.5
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$262.50
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Detailed explanation-1: -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-2: -Principal = $ 3000, Interest = $ 400, Time = 3 years. Therefore, Rate = 4.44 %.
Detailed explanation-3: -Thus, the simple interest on a loan of Rs 1, 000 with 5 % interest after 3 years is Rs 150.
Detailed explanation-4: -Given: The Simple Interest, SI = 5880. Time, n = 2.5 years. Rate of Interest, r = 10% Formula: SI = PRT/100. Amount = P(1 + R/100)n CI = P(1 + R/100)n-P. Calculations: The principal, P, is calculated as: SI = PRT/100. ⇒ 5880 = (P × 10 × 2.5)/100. ∴ compound interest is Rs. 7785. Download Soln PDF. Share on Whatsapp.