ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Starting money = $350.Interest rate = 2.5%TIme = 3 years.How much interest?
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$7.50
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$26.25
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$87.5
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$262.50
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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: -How much interest is that? The simple interest formula is I=Prt. The P represents the principal.
Detailed explanation-3: -A = Accrued amount (principal + interest) P = Principal amount. r = Annual nominal interest rate as a decimal. R = Annual nominal interest rate as a percent. r = R/100. n = number of compounding periods per unit of time. t = time in decimal years; e.g., 6 months is calculated as 0.5 years. More items
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