Question

In the formula I=P·r·t, what does r stand for?a.Rate: the percent that interest is paid annually as a decimalb.Ratio: the size of the interest interval compared to timec.Return: how much money you end up earningd.Reserves: how much money you have in the investmentPlease select the best answer from the choices providedABCD

Answer 1

The correct answer is Option A) Rate.

In the simple interest formula, I = P • r • t

I = interest earned from the investment
P = principal amount invested
r = annual interest rate that is expressed in decimal.
t = time (in years).

Therefore, the correct answer is Option A.