Answered

Experience the convenience of getting your questions answered at IDNLearn.com. Join our interactive community and access reliable, detailed answers from experienced professionals across a variety of topics.

Question 3 (True/False)

To calculate simple interest, you must multiply the principal by the nominal interest rate and the length of the investment.

A. True
B. False

Sagot :

GinnyAnsweridn
To solve this question, let us understand the formula for calculating simple interest.

Simple interest can be computed using the formula:
[tex]\[ \text{Simple Interest} = P \times r \times t \][/tex]

where:
- [tex]\( P \)[/tex] represents the principal amount (the initial amount of money)
- [tex]\( r \)[/tex] is the nominal annual interest rate (as a decimal)
- [tex]\( t \)[/tex] is the length of the investment (in years)

According to the problem, to calculate simple interest, one must multiply the principal by the nominal interest rate and the length of investment.

From the formula mentioned:
- We see the principal amount ([tex]\( P \)[/tex]) indeed needs to be multiplied by the interest rate ([tex]\( r \)[/tex]).
- It also needs to be multiplied by the length of time ([tex]\( t \)[/tex]) the money is invested or borrowed for.

Therefore, the statement given in the question precisely matches the formula used to calculate simple interest. Hence, this statement is:

True
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com has the solutions you’re looking for. Thanks for visiting, and see you next time for more reliable information.