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LenKa [72]
3 years ago
14

Fill in the blanks.

Mathematics
1 answer:
Roman55 [17]3 years ago
5 0

Answer:

One way of awarding interest is called simple interest. Before we provide the formula used in calculating simple interest, let’s first define some basic terms.

Balance. The balance is the current amount in an account or the current amount owed on a loan.

Principal. The principal is the initial amount invested or borrowed.

Rate. This is the interest rate, usually given as a percent per year.

Time. This is the time duration of the loan or investment. If the interest rate is per year, then the time must be measured in years.

To calculate the simple interest on an account or loan, use the following formula.

Simple Interest

Simple interest is calculated with the formula

I=Prt,

 

where I is the interest, P is the principal, r is the interest rate, and t is the time.

Step-by-step explanation:

One way of awarding interest is called simple interest. Before we provide the formula used in calculating simple interest, let’s first define some basic terms.

Balance. The balance is the current amount in an account or the current amount owed on a loan.

Principal. The principal is the initial amount invested or borrowed.

Rate. This is the interest rate, usually given as a percent per year.

Time. This is the time duration of the loan or investment. If the interest rate is per year, then the time must be measured in years.

To calculate the simple interest on an account or loan, use the following formula.

Simple Interest

Simple interest is calculated with the formula

I=Prt,

 

where I is the interest, P is the principal, r is the interest rate, and t is the time.

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