BANKING GENERAL KNOWLEDGE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]


fraction


decimal


ratio


dollar amount

Detailed explanation1: Answer. Stepbystep explanation: Before using the rate given as a percentage in simple interest formula, you must first convert it to decimal. This helps in simplifying the work and help the calculation.
Detailed explanation2: A little bit of math trivia, the rate is given as a percent before using it. In the simple interest formula, you must first convert it to a decimal value. Don’t forget to convert those rates to decimal values, so for example, 58 Percent means one divided by 100, so we have 58 divided by 100, and we would use .
Detailed explanation3: Simple Interest is calculated using the following formula: SI = P × R × T, where P = Principal, R = Rate of Interest, and T = Time period. Here, the rate is given in percentage (r%) is written as r/100. And the principal is the sum of money that remains constant for every year in the case of simple interest.
Detailed explanation4: Interest formula for simple interest: I = Prt where I is the total amount of interest accrued; over t time periods at a simple interest rate, r, and where the original amount invested or borrowed is P.
Detailed explanation5: Here’s the simple interest formula: Interest = P x R x T. P = Principal amount (the beginning balance). R = Interest rate (usually per year, expressed as a decimal). T = Number of time periods (generally oneyear time periods).