What is the formula for calculating simple interest?
A. Simple interest - Principal - Rate < Time

B. Simple interest = Principal - Rate + Time

C. Simple interest = Principal Rate < Time

D. Simple interest = Principal + Rate < Time


Answer :

Explanation:

the formulary for calculating simple interest is

simple interest= principal×rate×time/100

the formula for calculating simple interest is Simple interest = Principal - Rate + Time

What is simple interest?

Simple interest is a calculation of interest that doesn’t take into account the effect of compounding.  In many cases, interest compounds with each designated period of a loan, but in the case of simple interest, it does not.  The calculation of simple interest is equal to the principal amount multiplied by the interest rate, multiplied by the number of periods.

"The period must be expressed for the same time span as the rate. If, for example, the interest is expressed in a yearly rate, such as in a 5% per annum (yearly) interest rate loan, then the number of periods must also be expressed in years. Note that sometimes changes to interest rates may be expressed in basis points (BPS). It may be worth your while, as a financial professional, to learn how to convert BPS into interest rates.

What is principal?

Principal is most commonly used to refer to the original sum of money borrowed in a loan or put into an investment. It can also refer to the face value of a bond, the owner of a private company, or the chief participant in a transaction.

To learn more about principal here

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