Wiki User
∙ 13y agoSo with simple interest, the same amount is paid each year. F = P + i, with F is the future value, P is the Present value and i is the amount of interest.
i = P * r * t, which is Present X rate X time = P * 0.048 * 10 = P * 0.48, so with F = 1850, we have:
1850 = P + P*0.48 = P*1.48 --> P = 1850/1.48 = 1250
Wiki User
∙ 13y ago29.86
1200 rate*money invested*interest(divided by a 100) 5*4000*.06=1200
The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.
6% of $4,000 = $240 .If it's paid 5 times, he receives (240 x 5) = $1,200 .
This answer is False!!
One year.
Kate invested 4500.
29.86
12.76
463.72
1200 rate*money invested*interest(divided by a 100) 5*4000*.06=1200
The formula for simple interest is Interest = Principal x Rate x Time ÷ 100 As the rate is an annual rate and the period is 1 year then Interest = Principal x 4.5/100. The balance at the year end = Principal + Interest = Principal x 104.5/100.
You have confused between the terms. Simple interest and interest at flat rate is one and the same. The other type of interest is diminishing balance or reducing balance. These are interests associated with loans or finances sought. Well a simple rule of thumb is that usually simple interest rate is about half of rate on reducing balance. For e. g. if rate at reducing balance is 12% then simple interest for the same will be around or just more than 6%
6% of $4,000 = $240 .If it's paid 5 times, he receives (240 x 5) = $1,200 .
This answer is False!!
he will receive $1,200ANSWER:Yes $1,200 is the correct answer but the logic behind it is that, it is using simple interest term means here 6 is representing interest for a year, Inorder to calculate the whole interest we will multiply 6 by 5 years we will get 30%.The total interest he will get $4,000 x 30% = $1,200.
Simple interest would be 360