The amount of simple interest is determined by multiplying the amount in savings by the:
A)annual interest rate.
B)time period.
C)number of months in a year.
D)time period and number of months.
E)annual interest rate and the time period.

Question

Quizplus · Accepted Answer

The amount of simple interest is determined by multiplying the amount in savings by the annual interest rate and the time period. This formula can be stated as: Simple Interest = (Principal x Rate x Time). Therefore, the correct answer is E, which includes both the annual interest rate and the time period.

The Amount of Simple Interest Is Determined by Multiplying the Amount