Question

In the formula/-pirit, what does r stand for?
a. Rate: the percent that interest is paid annually as a decimal
b. Ratio: the size of the interest interval compared to time
C. Return: how much money you end up earning
d. Reserves: how much money you have in the investment

Answer 1

Answer:

The correct answer is A. Rate: the percent that interest is paid annually as a decimal.

Step-by-step explanation:

Let's recall the formula of the Simple interest:

A = P * (1 + rt)  

Where:  

A = Total Accrued Amount (principal + interest)

P = Principal Amount  or Initial deposit

r = Rate of Interest per year in decimal

t = Time Period involved in months or years

Therefore, the correct answer is A. Rate: the percent that interest is paid annually as a decimal.