ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sam borrowed $4, 500 for 2 years and had to pay $630 simple interest at the end of that time. What rate of interest did he pay?
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6%
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7%
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8%
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9%
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Explanation:
Detailed explanation-1: -Therefore, at 6% rate per annum the money 4500willbecome 5040 after 2 years.
Detailed explanation-2: -Therefore, the Amount is Rs. 5310.
Detailed explanation-3: -The simple interest is Rs. 720.
Detailed explanation-4: -Hence, at the end of 3 years, the simple interest is $787.5.
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