Question

In the formula I=P·r·t, what does P stand for? a. Percent: the interest rate expressed as a percentage b. Principal: the amount of money you initially invested c. Period: how often the interest is calculated d. Payout: how much money you end up with

Answer 1

Answer: Option 'b' is correct.

Explanation:

Since we have given that

`I=(P* R* T)/(100)`

Here, I stands for Simple interest

R stands for rate of interest

T stands for time period

P stands for the principal amount i.e. the amount of money you initially invested.

Hence, Option 'b' is correct.

Answer 2

B) Principal: the amount of money you initially invested

Explanation:

The given formula I=P·r·t is of Interest

In this formula

I is simple interest

r is the interest rate

t is the amount of time

P is the principle amount invested on which interest is calculated

hence of the given options, option b is correct i.e.

Principal: the amount of money you initially invested !