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the amount earned from investing or borrowing
interest
rate
principal
David borrowed 85,000 to purchase a car, with a loan term of three years at an interest raete of 12%. What is the interest amount?
30,600
Ella decided to invest in a bank. How much will she earn if she invested 15,000 for an interest rate of 10% in one year?
1,500
What is the formula to calculate simple interest?
I=P * R * T
T = Time, usually calculated as the number of years. TRUE OR FALSE
False
True
R = Rate of Interest in %. TRUE OR FALSE
True
False
P = Principal (amount borrowed). TRUE OR FALSE
False
True
What is the formula to calculate principal amount?
P=I/(rt)
Your interest rate is affected by your credit score. TRUE OR FALSE
False
True
Interest is the amount it will cost you to borrow money. TRUE OR FALSE
False
True
