ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The amount of interest
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The total amount
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The interest rate
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The time
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Detailed explanation-1: -A represents the new principal sum or the total amount of money after compounding period. P represents the original amount or initial amount. r is the annual interest rate.
Detailed explanation-2: -P = principal amount (the initial amount you borrow or deposit) r = annual rate of interest (as a decimal) t = number of years the amount is deposited or borrowed for. A = amount of money accumulated after n years, including interest.
Detailed explanation-3: -The simple interest formula is A=P(1+r)t A = P ( 1 + r ) t where P represents the amount originally deposited, r is the interest rate, and A is the amount in the account at t years.
Detailed explanation-4: -P = Principal Amount. I = Interest Amount. r = Rate of Interest per year in decimal; r = R/100. R = Rate of Interest per year as a percent; R = r * 100.
Detailed explanation-5: -It is governed by the formula: I = Prt. where I is the amount of interest, P is the principal (amount of money borrowed), r is the interest rate (per year), and t is the time (expressed in years).