ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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14
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140
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168
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16.80
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Detailed explanation-1: -Expert-Verified Answer Hence, the rate of interest per annum is 2.25%.
Detailed explanation-2: -Expert-Verified Answer Given : The simple interest on $800 for 3 years is $54.
Detailed explanation-3: -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-4: -Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100. And the principal is the sum of money that remains constant for every year in the case of simple interest.