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Simple interest worked out

Exercise and reference answers

Questions
  1. Question
    10,000 at 15% per annum earns, in one year
    Choices
    1. 1,500
    2. 150
    3. 15,000
    Correct choice
    1,500
  2. Question
    Over two years the simple interest is
    Choices
    1. 1,500
    2. 3,000
    3. 6,000
    Correct choice
    3,000
  3. Question
    The amount to be paid after two years is
    Choices
    1. 10,000
    2. 3,000
    3. 13,000
    Correct choice
    13,000
  4. Question
    Amount equals
    Choices
    1. principal plus interest
    2. principal minus interest
    3. interest only
    Correct choice
    principal plus interest

Explanation

syllabus Example 7: 10,000 borrowed at 15% per annum for 2 years gives 1,500 a year, 3,000 in total, and an amount of 13,000. Source: syllabus Maths, Ch 7 Comparing Quantities.
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