Asked in PPSC, FPSC and other one-paper exams (compiled from unofficial resources).
Financial MathematicsSimple and Compound Interest
Kyle bought a $\$2000$ government bond that yields $6\%$ simple interest per year. Write the equation that gives the total amount $A$, in dollars, Kyle will receive when he sells the bond after $t$ years.
- A.$A = 2000(0.06)^t$
- B.$A = 2000(1 + 0.06)^t$
- C.$A = 2000 + 0.06t$
- D.$A = 2000(1 + 0.06t)$Correct answer
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Practice these MCQs in the appQuick fact: The simple interest formula gives the total amount as $A = 2000(1 + 0.06t)$.