BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Original Amount borrowed
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Original Amount invested
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Maturity Amount Borrowed
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Maturity Amount invested
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Detailed explanation-1: -P is the principal amount. for the creditor, it is the original amount borrowed.
Detailed explanation-2: -P is Present Value or Principal. The present value is the amount borrowed or invested at the beginning of a period.
Detailed explanation-3: -Summary. This topic uses two formulas: Interest=Principal×Rate×TimeI=PRTAmount=Principal+InterestA=P+I Principal is your starting amount of money. Rate is the interest rate in a decimal. Time is number of times the Interest is taken, usually in years.
Detailed explanation-4: -Simple Interest Formula To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time.” This equation is the simplest way of calculating interest.
Detailed explanation-5: -The variable P represents the principal amount, r represents the interest rate, and t represents the amount of time the interest has been accruing.