ECONOMICS (CBSE/UGC NET)

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ECONOMICS

COMPOUND INTEREST

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Ryan is trying to determine how much interest he will earn by placing money into the bank. If he has $10, 400 with a 1.5% rate over 30 months.
A
$390
B
$10, 790
C
$39, 000
D
$4, 680
Explanation: 

Detailed explanation-1: -Interest is calculated by dividing the per annum interest rate by 365 to get the daily interest rate, then multiplied by the number of days of the term deposit investment term.

Detailed explanation-2: -Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.

Detailed explanation-3: -For a daily interest rate, divide the annual rate by 360 (or 365, depending on your bank). For a quarterly rate, divide the annual rate by four. For a weekly rate, divide the annual rate by 52. 03-Jun-2022

Detailed explanation-4: -(P x r x t) รท (100 x 12) Example 1: If you invest Rs.50, 000 in a fixed deposit account for a period of 1 year at an interest rate of 8%, then the simple interest earned will be: Example 1: Say you borrowed Rs.5 lakh as personal loan from a lender on simple interest.

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