The amount of simple interest during 'n' interest period is (where, i = interest rate based on the length of one interest period, p = principal) ?
Correct answer: A. p.i.n.
- A. p.i.n.
- B. p(1 + i.n)
- C. p(1 + i)n
- D. p(1 - i.n)
Explanation
Simple interest is calculated only on the original principal in every period, so total interest after n periods is I = pin. The accumulated amount would instead be p(1 + in).
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