In the formula Bnew = Bprevious + rP, the rP represents which of the following? a....
In the formula Bnew = Bprevious + rP, the rP represents which of the following?
a. interest rate per compound period
b. effective rate of interest
c. total interest earned for all the years that the account has been active
d. interest earned at the end of the current year
e. annual interest rate
Homework Answers
The answer is:
The formula is:
Bnew = Bprevious + rP
The formula says that the balance for successive years are computed by adding rP to the previous balance, rP being the interest amount for each year (and not interest rate). It is basically your rate of interest * Principal = Interest for the year.
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In the formula Bnew = Bprevious + rP, the rP represents which of
the following?
a....
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