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Questions and Answers
What does the variable 'P' represent in the simple interest formula?
What does the variable 'P' represent in the simple interest formula?
- The amount of interest paid per year
- The total interest earned
- The initial amount invested or borrowed (correct)
- The time period in years
Which of the following correctly describes the 'i' in the simple interest formula?
Which of the following correctly describes the 'i' in the simple interest formula?
- The total amount of money after interest is added
- The interest rate expressed as a decimal (correct)
- The principal amount in decimal form
- The number of years the money is invested
If the principal is $1000, the interest rate is 5% per year, and the time period is 3 years, what is the accumulated amount using the simple interest formula?
If the principal is $1000, the interest rate is 5% per year, and the time period is 3 years, what is the accumulated amount using the simple interest formula?
- $1150 (correct)
- $1000
- $1050
- $1100
Which of the following statements about simple interest is true?
Which of the following statements about simple interest is true?
What would happen to the accumulated amount if the principal increases while the interest rate and time period remain unchanged?
What would happen to the accumulated amount if the principal increases while the interest rate and time period remain unchanged?
What happens to the accumulated amount if the time period is doubled while keeping the principal and interest rate constant?
What happens to the accumulated amount if the time period is doubled while keeping the principal and interest rate constant?
If the interest rate is expressed as a fraction rather than a decimal, which of the following conversions correctly prepares it for use in the simple interest formula?
If the interest rate is expressed as a fraction rather than a decimal, which of the following conversions correctly prepares it for use in the simple interest formula?
Which of the following best describes the relationship between the principal and the accumulated amount when the interest rate is zero?
Which of the following best describes the relationship between the principal and the accumulated amount when the interest rate is zero?
How does increasing the principal affect the accumulated amount if both the interest rate and time period remain unchanged?
How does increasing the principal affect the accumulated amount if both the interest rate and time period remain unchanged?
What is the impact on the accumulated amount if the interest rate is reduced by half, keeping the principal and time period the same?
What is the impact on the accumulated amount if the interest rate is reduced by half, keeping the principal and time period the same?
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