Question

The amount of interest is determined by multiplying the amount in savings by the:
A. annual interest rate.

B. annual interest rate and the time period.

C. time period.

D. time period and number of months

Answer 1

answer is A

Answer 2

The formula is:

I=(P)(R)(T)
where I=Interest
where P=Principal (in this case it is the savings)
where R=Rate of Interest
where T=The Time Period

Therefore, the answer is B