ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Raymond deposited $2000 at American National Bank. Find the simple interest at 6.5% for 4 years.
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$250
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$520
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$2520
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$2500
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Explanation:
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: -Compound interest =1215. 50625−1000=215. 50625=₹215.
Detailed explanation-3: -Simple Interest Formula Thus, if simple interest is charged at 5% on a $10, 000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10, 000 x 0.05 x 3 = $1, 500.
Detailed explanation-4: -Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13, 000.
There is 1 question to complete.