Question

In the formula I=P.r.t, what does r stand for?

a. Rate: the percent that interest is paid annually as a decimal
b. Ratio: the size of the interest interval compared to time
C. Return: how much money you end up earning
d. Reserves: how much money you have in the investment

Answer 1

A) Rate: the percent that interest is paid annually as a decimal

Answer 2

a. Rate: the percent that interest is paid annually as a decimal

Explanation:

Given the simple interest formula:

I=P*r*t

I refers to interest

P refers to principal (initial value)

r refers to interest rate (decimal)

and t refers to time (years)