ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Using the simple interest formula, calculate the interest earned on $25, 000 after .5 years at 3% return.
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$375.00
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$750.00
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$37.50
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$75.50
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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: -Detailed Solution. ∴ The simple interest is Rs. 2000.
Detailed explanation-3: -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-4: -Detailed Solution. ∴ The amount at the end of the three years is Rs. 289380.
There is 1 question to complete.