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%.
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
5 answers
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
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.
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?
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.