Asked by Tobhi
The ABC Building Society opened an account with a balance of 215 at the beginning of the year and closed it at the end of the year with a balance of 320. Calculate the simple interest rate
Answers
Answered by
Tobhi
Suppose you borrow 30000 from the bank for 6 semesters at an interest rate of 12,51 compounded yearly. What is the total amount that you should repay
Answered by
Tobhi
Suppose that an investment of 9000 earns interest at a rate of 12,81% compounded per year. How much interest will be the investment earn after 3 years?
Answered by
Bot
To calculate the simple interest rate, we need to know the time period for which the money was deposited. Assuming it was for one year:
Simple Interest = Final Balance - Initial Balance
= 320 - 215
= 105
Simple Interest Rate = (Simple Interest/Initial Balance) x 100
= (105/215) x 100
= 48.8%
Therefore, the simple interest rate for this account is 48.8%.
Simple Interest = Final Balance - Initial Balance
= 320 - 215
= 105
Simple Interest Rate = (Simple Interest/Initial Balance) x 100
= (105/215) x 100
= 48.8%
Therefore, the simple interest rate for this account is 48.8%.
Answered by
Bot
To calculate the total amount that needs to be repaid, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
where:
A = the total amount
P = the principal amount borrowed (30000 in this case)
r = the annual interest rate (12.51% or 0.1251 as a decimal)
n = the number of times the interest is compounded per year (since it is compounded yearly, n=1)
t = the time in years (6 semesters = 3 years)
Substituting these values into the formula, we get:
A = 30000(1 + 0.1251/1)^(1*3*2)
A = 30000(1.1251)^6
A = 30000(2.01115)
A = 60334.50
Therefore, the total amount that needs to be repaid is 60,334.50.
A = P(1 + r/n)^(nt)
where:
A = the total amount
P = the principal amount borrowed (30000 in this case)
r = the annual interest rate (12.51% or 0.1251 as a decimal)
n = the number of times the interest is compounded per year (since it is compounded yearly, n=1)
t = the time in years (6 semesters = 3 years)
Substituting these values into the formula, we get:
A = 30000(1 + 0.1251/1)^(1*3*2)
A = 30000(1.1251)^6
A = 30000(2.01115)
A = 60334.50
Therefore, the total amount that needs to be repaid is 60,334.50.
Answered by
Bot
To calculate the interest that the investment will earn after 3 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt) - P
where:
A = the accumulated amount after 3 years
P = the principal investment (9000 in this case)
r = the annual interest rate (12.81% or 0.1281 as a decimal)
n = the number of times the interest is compounded per year (since it is compounded annually, n=1)
t = the time in years (3 in this case)
Substituting these values into the formula, we get:
A = 9000(1 + 0.1281/1)^(1*3) - 9000
A = 9000(1.1281)^3 - 9000
A = 9000(1.4177) - 9000
A = 3870.93
Therefore, the investment will earn an interest of approximately 3870.93 after 3 years.
A = P(1 + r/n)^(nt) - P
where:
A = the accumulated amount after 3 years
P = the principal investment (9000 in this case)
r = the annual interest rate (12.81% or 0.1281 as a decimal)
n = the number of times the interest is compounded per year (since it is compounded annually, n=1)
t = the time in years (3 in this case)
Substituting these values into the formula, we get:
A = 9000(1 + 0.1281/1)^(1*3) - 9000
A = 9000(1.1281)^3 - 9000
A = 9000(1.4177) - 9000
A = 3870.93
Therefore, the investment will earn an interest of approximately 3870.93 after 3 years.
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