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In the formula i=p·r·t, what does p stand for?
a. percent: the interest rate expressed as a percentage
b. principal: the amount of money you initially invested
c. period: how often the interest is calculated
d. payout: how much money you end up with

Respuesta :

texaschic101
I = P * R * T
Interest = principal * rate * time

so P = principal : the amount of money u initially invest
Lanuel

In the formula I = PRT, the variable P stands for: b. principal: the amount of money you initially invested.

What is an interest?

An interest can be defined as an amount of money that is charged from a borrower on a loan by a lender such as a financial institution (bank).

The types of interest.

In Financial accounting, there are two (2) main types of interest and these include:

  • Compound interest
  • Simple interest

Mathematically, simple interest is given by the formula:

[tex]I = PRT[/tex]

Where:

  • I is the simple interest.
  • P is the principal or starting amount.
  • R is the interest rate.
  • T is the time measured in years.

In conclusion, the variable P stands for principal and it is the amount of money you initially invested.

Read more on principal here: https://brainly.com/question/24341207

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