Question

out 20800 to 2 years at the simple interest of 2% per
13 and 199 an the rest Fow much interest did
Shiza decouted 2000 is a bank which pays 6% simple interest. She withdrew
9 aste end of the first year. What will be her balance after 3 years?​

Answer 1

Answer:

Simple Interest Formula

Simple interest is a method of calculating the interest that is charged on fixed deposits, savings accounts, and loans. It is calculated on the principal amount. Simple interest does not add any interest rate on the interest amount gathered on the principal amount.

Where Is the Concept of Simple Interest Used?

Simple interest may be used in the following financial situations:

Borrowing money: In the case of a loan, you will need to pay interest on the amount you have borrowed.

Lending money: In the case of a savings account, fixed deposit , or recurring deposit, you will receive the amount in the form of interest on your principal.

However, banks, financial institutions, and professional lenders in India do not use simple interest. They use compound interest instead.