The rate(r) is given as a percent (%). Before using it in an interest formula, you must first convert it to a ..... .

COMPOUND INTEREST

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

The rate(r) is given as a percent (%). Before using it in an interest formula, you must first convert it to a ____ .

A	fraction
B	decimal
C	ratio
D	dollar amount

Explanation:

Detailed explanation-1: -Answer. Step-by-step 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 explanation-2: -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.

Detailed explanation-3: -The % is a percent sign, meaning divided by 100. So 25% means 25/100, or 1/4. To convert a percentage to a decimal, divide by 100. So 25% is 25/100, or 0.25.

Detailed explanation-4: -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 one-year time periods).

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

COMPOUND INTEREST