marienikole
contestada

interest is calculated by ____.
a) adding the interest rate to the principal
b)multiplying the principal by the interest rate
c) multiplying the principal by the interest rate and the time
d) multiplying the principal by the interest rate and dividing by the time

Respuesta :

I think its c) multiplying the principal by the interest rate and time...

Answer:

c) multiplying the principal by the interest rate and the time.

Step-by-step explanation:

The interest is calculated by product of the principal amount and the interest rate and the time.

And if we want the total future value that the person has to pay then add the principal amount to the interest.

Amount=P+P*R*T

Amount=P(1+RT)

Hence we conclude that the answer is option c).