ECONOMICS
INCENTIVES
Question
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Simple interest


Compound Interest


Coupon


Monetary Incentives

Detailed explanation1: The amount of interest earned on an investment or due on a loan is calculated using I = Prt. This formula can also be used to determine: the amount of principal (P) that needs to be invested in order to earn a certain amount of interest over a certain period of time.
Detailed explanation2: 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 explanation3: Interest is money paid or earned for the use of money. The principal is the amount of money borrowed or deposited.
Detailed explanation4: The formula for Simple Interest is PTR100, where. P = Principal. T = Time period in years. R = Rate of interest per annum. A.
Detailed explanation5: 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 oneyear time periods).