Rate of Interest
Rate of Interest is the amount a lender charges a borrower and is a percentage of the principal. The principal is either the amount loaned or invested in a certain business. Rate of interest on loan or investment is typically noted on an annual basis known as the annual percentage rate (APR). The formula is given by: Interest Rate = (Simple Interest × 100)/(Principal × Time).
Answer:
decimals
Things to Remember:
- The rate of interest must be converted into decimals before substituting to the formula of finding the interest.
- An interest rate is the percentage of principal charged by the lender for the use of its money.
- The principal is the amount of money borrowed or invested.
- An interest rate is the percentage of principal charged by or to the lender or the borrower for the use of its money.
- Interest rates affect your cost of borrowing money. Always compare interest and APR when considering loans or investments.
What is the rate of interest: https://brainly.ph/question/220676
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