ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal = $350.Interest rate = 2.5%TIme = 3 years.How much simple interest?
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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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Explanation:
Detailed explanation-1: -Hence, at the end of 3 years, the simple interest is $787.5.
Detailed explanation-2: -How much interest is that? The simple interest formula is I=Prt. The P represents the principal.
Detailed explanation-3: -Therefore, it will take 50 years to get the double amount at a simple interest rate 2 % per annum.
Detailed explanation-4: -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."
There is 1 question to complete.