simple interest & compound interest

what is the correct answer about definition of simple interest?

• 1. Simple Interest is based on the compound interest formula.

• Simple Interest is a straightforward way to calculate interest. It involves multiplying the principal by the interest rate and the time period (converted to years) between payments.

• Simple Interest is calculated by adding the principal and interest rate

• Simple Interest remains constant regardless of the time period

what is the correct answer about "P" in formula of simple interest?

I = Prt =Pxrxt

(P)?

• 1. In the Simple Interest formula, "P" represents the interest rate.

• 1. 
     The "P" in the Simple Interest formula signifies the time duration.

• 1. Simple Interest formula interprets "P" as the total interest earned.

• P = Principal ( Amount of money borrowed, deposited or invested)

what is the correct answer formula of simple amount ?

• S = P (1 - rt)

  or

  S = P + I

• S = P / (1 + rt)

  or

  S= P+I

• S = P (1+rt)

  or

  S = P(I)

• S = P (1 + rt )

  or

  S= P + I

what is the correct answer "r" in formula simple interest?

I = Prt =Pxrxt

(r)?

• 1. Simple Interest formula interprets "r" as the total interest earned.

• 1. In the Simple Interest formula, "r" represents the time duration.

• In the Simple Interest, "r" signifies the interest rate applied to the principal amount.

• The "r" in the Simple Interest formula stands for the principal amount

what is the correct answe about "t" in formula simple interest?

I = Prt =Pxrxt
(t)?

• "t" represents the time duration or length in years, indicating the period for which the interest is calculated.

• 1. In the Simple Interest formula, "t" represents the total interest earned.

• 1. The "t" in the Simple Interest formula stands for the principal amount.

• Simple Interest formula mistakenly interprets "t" as the time elapsed between payments in days

what is the correct answer about definition of compound interest ?

• Compound interest grows faster than simple interest as it considers both the initial principal and accumulated interest.

• 1. Compound interest is solely based on the initial principal amount, excluding any accumulated interest.

• 1. 
     Compound interest is calculated without considering the growth of the sum over time

• 1. 
     Unlike simple interest, compound interest doesn't involve the concept of "interest on interest" and grows at the same rate.

what is the correct answer about formula of compound interest?

• S = P / (1 + i).

• S = P + li

• S=P(l+i)

• S = P - li

what is the "WRONG" answer about compounded and number of times interest calculated ?

• semi-annually ~ m=2

• every three months ~ m= 7

• every six month~ m = 2

• montly ~ m = 12

what is the correct answer about "S" in formula of compound interest

S=P(l+i)

(s)?

• 1. S stands for the interest rate in the Compound Interest formula S = P(1 + i).

• 1. S in the formula S = P(1 + i) indicates the initial principal only.

• "S" represents the compound amount or the total value after interest has been compounded.

• The letter S in S = P(1 + i) represents the simple interest amount

what is the correct answer about "P" in formula of compound interest

S=P(l+i)

(P)?

• 1. The Compound Interest formula identifies "P" as the total interest earned.

• In the formula for Compound Interest, "P" represents the principal amount, which is the initial sum of money borrowed, deposited, or invested.

• 1. In the Compound Interest formula S = P(1 + i), "P" signifies the interest rate.

• 1. The correct interpretation is that "P" in S = P(1 + i) stands for the time duration.