ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal = $500Interest earned in 4 years = $60.Find the interest rate.
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1%
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2%
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3%
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4%
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Explanation:
Detailed explanation-1: -A 2-year loan of $500 is made with 4% simple interest. Find the interest earned. Answer: The interest earned is $40.
Detailed explanation-2: -SI = (P x R x T) / 100 P = Principal amount (invested or borrowed) R = Rate of interest. T = Time period (investment or loan repayment)
Detailed explanation-3: -The simple interest of a loan for $1, 000 with 5 percent interest after 3 years is $ 150.
Detailed explanation-4: -However, it’s easier to use a handy formula: rate equals distance divided by time: r = d/t.
There is 1 question to complete.