The total payment to a lender for a simple loan is
A)P.
B)P + i.
C)i(1 + i).
D)P(1 + i).

Name: The total payment to a lender for a simple loan is A)P. B)P + i. C)i(1 + i). D)P(1 + i).
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

The total payment for a simple loan is the principal (P) plus the interest (i). Therefore, the correct formula is P + (P x i), which can be simplified to P(1 + i). Therefore, the best choice is D, which matches this formula.

The Total Payment to a Lender for a Simple Loan