ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The amount of interest earned on an investment or due on a loan is calculated using I = Prt. This formula can also be used to determine: the amount of principal (P) that needs to be invested in order to earn a certain amount of interest over a certain period of time.

Detailed explanation-2: -Explanation: The simple interest formula is given by I = PRt where I = interest, P = principal, R = rate, and t = time. Here, I = 10, 000 * 0.09 * 5 = $4, 500. The total repayment amount is the interest plus the principal, so $4, 500 + $10, 000 = $14, 500 total repayment.

Detailed explanation-3: -Interest is money paid or earned for the use of money. The principal is the amount of money borrowed or deposited.

Detailed explanation-4: -The formula for Simple Interest is PTR100, where. P = Principal. T = Time period in years. R = Rate of interest per annum. A.

Detailed explanation-5: -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).