ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ryan borrowed $1, 350 from a friend. His friend gave him a 2% compound interest rate. How much will Ryan’s friend profit off of this loan if Ryan pays it back after 6 years?
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$1, 520.32
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$166.86
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$170.32
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$162
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Explanation:
Detailed explanation-1: -Therefore, it will take 50 years to get the double amount at a simple interest rate 2 % per annum.
Detailed explanation-2: -P = Rs. 2500 Amount = C.I = A-P = Rs. 3025-2500 = Rs. 525.
Detailed explanation-3: -Hence the compound interest that needs to be paid after two year will be equal to Rs 205.
Detailed explanation-4: -Assume that you have invested ₹1, 00, 000 for monthly payouts at ₹2 Rupee interest, your rate of interest would be 24%. Refer to the formula. l = p× r × t, where “I” stands for interest, “p” stands for principal, “r” stands for the rate of interest and “t” stands for the amount of time.
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