PRC-2 · Chapter 2 · Question 31 of 45
What is the formula for calculating Simple Interest (I)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) I = P × r × n
Explanation
Simple interest is calculated only on the original principal amount (P) for the specified period (n) at the given rate (r).
More Coordinate System and Its Application MCQs
- Q33A series of equal periodic payments made at regular intervals is known as a/an:
- Q34In financial mathematics, 'Present Value' (PV) refers to:
- Q35What is the effective annual rate (EAR) if the nominal rate is 12% compounded monthly?
- Q36An annuity where the payments are made at the *beginning* of each period is called a/an:
- Q37What happens to the Present Value of a future payment as the discount rate (interest rate) increases?