# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### SAVING AND INVESTING

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Using the simple interest formula, calculate the interest earned on \$25, 000 after .5 years at 3% return.
 A \$375.00 B \$750.00 C \$37.50 D \$75.50
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.