ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principal = £800Interest Rate = 3.5%Time = 6 monthsFind the simple interest earned.* Time needs to be in years*
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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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Explanation:
Detailed explanation-1: -As we saw in Example 2, 6 months equals 1/2 year. Substitute these numbers into the simple interest formula I=Prt.
Detailed explanation-2: -8000 for 15 months at 6 paise per rupee per month. Here, the rate of interest and the time are given per month. Therefore, the simple interest is Rs. 7200.
Detailed explanation-3: -=7008×165=1121285=Rs. 22425.60.
There is 1 question to complete.