ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You get a loan for $4, 000 that is compounded annually at 5%. How much interest will she owe after 8 years?
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3, 500.88
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6000
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1909.82
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1, 270.90
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Explanation:
Detailed explanation-1: -So, the correct answer is “410 Rs.”.
Detailed explanation-2: -For example, if you take out a five-year loan for $20, 000 and the interest rate on the loan is 5 percent, the simple interest formula would be $20, 000 x .05 x 5 = $5, 000 in interest.
Detailed explanation-3: -∴ Compound interest is Rs. 410.
Detailed explanation-4: -(P x r x t) ÷ (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.
There is 1 question to complete.