ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
How much would $10, 000 on deposit at a five percent annual simple interest rate for three years earn?
|
|
$1, 250
|
|
|
$1, 500
|
|
|
$1, 576.25
|
|
|
$2, 576.25
|
Explanation:
Detailed explanation-1: -If you had a monthly rate of 5% and you’d like to calculate the interest for one year, your total interest would be $10, 000 × 0.05 × 12 = $6, 000. The total loan repayment required would be $10, 000 + $6, 000 = $16, 000.
Detailed explanation-2: -Simple Interest Formula Thus, if simple interest is charged at 5% on a $10, 000 loan that is taken out for three years, then the total amount of interest payable by the borrower is calculated as $10, 000 x 0.05 x 3 = $1, 500.
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: -Ans Amount after 5 years = Rs. 16105. 1.
There is 1 question to complete.