ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$4340
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$2160
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$5600
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$840
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Detailed explanation-1: -If you have a 6 percent interest rate and you make monthly payments, you would divide 0.06 by 12 to get 0.005. Multiply that number by your remaining loan balance to find out how much you’ll pay in interest that month. If you have a $5, 000 loan balance, your first month of interest would be $25.
Detailed explanation-2: -interest = RS. 490. Was this answer helpful?
Detailed explanation-3: -Principal = $ 3500, Interest = $ 700, Rate = 4% p.a. Therefore, Time (T) = 5 years.
Detailed explanation-4: -For this reason, lenders often like to present interest rates compounded monthly instead of annually. For example, a 6% mortgage interest rate amounts to a monthly 0.5% interest rate. However, after compounding monthly, interest totals 6.17% compounded annually.