ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The interest rate of the loan
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The amount of time that has passed.
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The total amount of money after a certain amount of time.
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The amount required to invest.
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Detailed explanation-1: -P represents the original amount or initial amount. r is the annual interest rate. n represents the compounding frequency or the number of times interest is compounded in a year. t represents the number of years.
Detailed explanation-2: -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-3: -Using the interest rate formula, we get the interest rate, which is the percentage of the principal amount, charged by the lender or bank to the borrower for the use of its assets or money for a specific time period. The interest rate formula is Interest Rate = (Simple Interest × 100)/(Principal × Time).
Detailed explanation-4: -R = Rate of interest per annum.