ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What does P represent in the formula I=Prt?
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principal
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interest earned
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period of time
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interest rate
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Explanation:
Detailed explanation-1: -P = Principal Amount. I = Interest Amount. r = Rate of Interest per year in decimal; r = R/100.
Detailed explanation-2: -Explanation: The simple interest formula is given by I = PRt where I = interest, P = principal, R = rate, and t = time. Here, I = 10, 000 * 0.09 * 5 = $4, 500. The total repayment amount is the interest plus the principal, so $4, 500 + $10, 000 = $14, 500 total repayment.
Detailed explanation-3: -P = principal. r = rate of interest. n = number of times interest is compounded per year. t = time (in years)
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