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What formula applies in the computation of interest on a loan? (p=principal; r=rate; t=time) a. p x r/ t b. p x r x t c. p x t / r d. p / t x r

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تم إضافة السؤال من قبل KAREN JOY LAMATON , Accountant , Bafco Trading LLC
تاريخ النشر: 2014/03/02
Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

If it is simple interest then

Interest is =Principal * Rate (per unit of time, per unit of currency) * Time.

So with these qualifications, the answer is "b."

Khalid Khan
من قبل Khalid Khan , Finance Manager / Chief Accountant , IDEAL ENTERPRISES LLC (Construction & Contracting)IDEAL LINK SOLUTIONS (IT SOFTWARE & HARDWARE)

B=  P x R X T

طارق محمد احمد قلالوه
من قبل طارق محمد احمد قلالوه , موظف مالي , مؤسسة المواصفات والمقاييس

p(1+r)^t=FV

NoTe :FV =future Value 

Malik Muhammad Ilyas Awan
من قبل Malik Muhammad Ilyas Awan , Audit Trainee , Crow Horwath International (Chartered Accountants)

If interest payment is annually, formaula is =Principle x Interest Ratex Time(12/12). in case of monthly payment get the rate by dividing the interest rate by months.

islam ahmed
من قبل islam ahmed , Regional Accounting Manager , EJADA

Answer is B.   P x R x T 

 

Dasarathi Rath
من قبل Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

The Computation of interest on loan calculation answer is:-

b. P X R X T

 

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