Question

Select the function that represents the simple interest formula.

A. A) = P(1 + )- 1, where n is a positive integer

O

B. A(n) = P+ (n-1);• P, where n is a positive integer

O

C. An) = n + (-1). P, where n is a positive integer

O

D. A(n) = (1 - 1)(P:n)', where nis any real number

Answer 1

B. A(n) = P + (n-1)i*P

Explanation:

The formula to determine the simple interest formula is given below:

Simple interest = P×r × t

where

P denotes the principal

r denotes the rate of interest

And, t denotes the number of years

Now we replace i with the t

So,

SI = Pni

Now for n-1 years, the simple interest is

SI = P(n - 1)×i

So, the total amount would be

A(n) = P + (n - 1)i × P