ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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FALSE
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TRUE
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Either A or B
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None of the above
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Detailed explanation-1: -How do I Calculate Simple Interest Monthly? To calculate simple interest monthly, we have to divide the yearly interest calculated by 12. So, the formula for calculating monthly simple interest becomes (P × R × T) / (100 × 12).
Detailed explanation-2: -Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally one-year time periods).
Detailed explanation-3: -Given: SI = 100. r = 10% t = 6 month = 6/12 year. Concept used: SI = Prt/100. P → princiapl r → rate of interest. Calculation: 100 = (P × 10 × 6)/(12 × 100) P = (100 × 100 × 12)/(10 × 6) P = 2000. Download Soln PDF. Share on Whatsapp.
Detailed explanation-4: -Given : The principal is Rs. 19800 and the rate of interest is 6%. Time = 9 months = 9/12 = 3/4 years. Concept used : Interest = (principal × interest rate × time)/100. Calculations: According to the question. Interest = [19800 × 6 × (3/4)]/100. ⇒ Rs. 891. ∴ The simple interest is Rs. 891. Download Soln PDF. 21-Jan-2023