7. Interest and Loans
Interactive practice questions
Determine the truth, or otherwise, of the following statement.
The difference between compound and simple interest is:
- Simple interest is calculated on the original amount (the principal) only.
- Compound interest is calculated and added in during the length of the time period, and hence has the effect of accumulating interest on interest.
True
A
False
B
Easy
< 1min
If $\$1000$$1000 is invested for $4$4 years with an interest rate of $5%$5% per annum, calculate the final balance, rounded to the nearest cent, if:
Easy
2min
If $\$100000$$100000 is invested for $4$4 years with an interest rate of $10%$10% per annum, calculate the final balance, rounded to the nearest cent, if:
Easy
2min
If $\$100$$100 is invested for $3$3 years with an interest rate of $6%$6% per annum, calculate the final balance, rounded to the nearest cent, if:
Medium
2min
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