Question

give an example of two principal amounts and two periods of time for which the simple interest turned at 2.42 percent would be equal

Answer 1

Case 1: Principal: 10,000; Period: 1 year Case 2: Principal: 1,000; Period: 10 years Case 3: Principal: 5,000; Period: 2 years Case 4: Principal: 2,500; Period: 4 years Simple Interest is a product of period, principal and interest rate, for a given interest rate, the interest earned would be equal if the product of principals and period is same for any number of cases. In our examples, we see that the product of principal and period comes out to be 10,000 in each case.