# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### MONEY

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Maria borrowed \$3, 000 at a simple interest rate of 4% per year. How much did she have to repay after 4 years?
 A \$480 B \$3, 480 C \$4, 800 D \$7, 800
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: -The simple interest formula is I=Prt. The P represents the principal. The principal is . Alexton the Skeleton borrowed \$4, 000 for 5 years at 6% simple interest rate to pay for his band equipment.

Detailed explanation-3: -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-4: -I = Prt. where I is the amount of interest, P is the principal (amount of money borrowed), r is the interest rate (per year), and t is the time (expressed in years). The formula can also be expressed as: A = P + I = P(1 + rt)

There is 1 question to complete.