ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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You put $201 into an investment at a simple intererst rate 9% for four years. What will the balance be at the end of four years?
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$180.90
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$72.36
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$273.36
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$381.90
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Explanation:
Detailed explanation-1: -To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time.” This equation is the simplest way of calculating interest.
Detailed explanation-2: -For example, with a 9% rate of return, the simple calculation returns a time to double of eight years.
Detailed explanation-3: -Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13, 000.
Detailed explanation-4: -$3188, 32 invested into an account paying 9% compounded daily will accumulate to $5, 000 in five years.
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