ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$15
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$85
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$105
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$115
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Detailed explanation-1: -Therefore, the Compound interest is ₹1261.
Detailed explanation-2: -The simple interest of a loan for $1, 000 with 5 percent interest after 3 years is $ 150.
Detailed explanation-3: -For example, let’s say you take out a $10, 000 loan at 5% annual simple interest to repay over five years. You want to know your total interest payment for the entire loan. To start, you’d multiply your principal by your annual interest rate, or $10, 000 × 0.05 = $500.
Detailed explanation-4: -How much will there be in one year? The answer is $110 (FV). This $110 is equal to the original principal of $100 plus $10 in interest. $110 is the future value of $100 invested for one year at 10%, meaning that $100 today is worth $110 in one year, given that the interest rate is 10%.