Home › CAT › Quantitative Aptitude › Simple and Compound Interest › Heena borrows 20,000 at 8% compounded annually. …
Heena borrows 20,000 at 8% compounded annually. The interest for the first year is:
A2400
B1600
C1728
D1200
Answer & Solution
Correct answer: B. 1600
1. Only the original sum earns in year one.
2. Eight per cent of 20,000 is the answer.
3. The interest is 1600.
_Source: NCERT Class 8 Mathematics, Chapter 8, Comparing Quantities._
Related questions
Someone seeking the highest interest rate available should remember that investments are uThe time value of money is linked to inflation because rising prices:A single one-time receipt or payment of cash is described as a:Because of that, 200 at a given rate compounded quarterly rather than annually will grow tWhen compounding happens more often within a year, the interest income is received:Using it at 12% a year, money doubles in about:Using the same shortcut at 6% a year, money doubles in about:Using that shortcut, savings earning 9% a year will take about how long to double?