ECONOMICS
COMPOUND INTEREST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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P= P o + P o ^rt
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P= Po (1+r/n) ^nt
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Either A or B
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None of the above
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Detailed explanation-1: -How do you Calculate Simple Interest? 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-2: -To calculate simple interest, multiply the principal amount by the interest rate and the time. The formula written out is “Simple Interest = Principal x Interest Rate x Time.” This equation is the simplest way of calculating interest.
Detailed explanation-3: -Summary. This topic uses two formulas: Interest=Principal×Rate×TimeI=PRTAmount=Principal+InterestA=P+I Principal is your starting amount of money.
Detailed explanation-4: -P = Principal, it is the amount that initially borrowed from the bank or invested. R = Rate of Interest, it is at which the principal amount is given to someone for a certain time, the rate of interest can be 5%, 10%, or 13%, etc., and is to be written as r/100.
Detailed explanation-5: -The simple interest formula is I = Prt where. I = interest earned r = annual interest rate ( stated as a decimal) P = principal t = time (in years) Interest rates are quoted for periods of one year and when used in a formula must be converted to a decimal fraction.