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?
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interest rate
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time
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principal
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total amount
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Explanation:
Detailed explanation-1: -The present value is the amount borrowed or invested at the beginning of a period.
Detailed explanation-2: -Simple Interest Formula Principal: The principal is the amount that initially borrowed from the bank or invested. The principal is denoted by P. Rate: Rate is the rate of interest at which the principal amount is given to someone for a certain time, the rate of interest can be 5%, 10%, or 13%, etc.
Detailed explanation-3: -P = principal. r = rate of interest. n = number of times interest is compounded per year. t = time (in years)
Detailed explanation-4: -SI = Simple interest. P = Principal (sum of money borrowed) R = Rate of interest p.a.
There is 1 question to complete.