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Interest is the sum charged for borrowing money for a fixed period of time. Principal is the term used for the money that is bor
Interest is the sum charged for borrowing money for a fixed period of time. Principal is the term used for the money that is bor
admin
2012-02-07
84
问题
Interest is the sum charged for borrowing money for a fixed period of time. Principal is the term used for the money that is borrowed, and the rate of interest is the percent per year of the principal charged for its use. Most of the profits for a bank are derived from the interest that they charge for the use of their own or their depositors’ money.
All problems in interest may be solved by using one general equation that may be stated as follows:
Interest = Principal X Rate X Time
Any one of the four quantities—that is, interest, principal, rate, or time —may be found when the other three are known. The time is expressed in years. The rate is expressed as decimal fraction. Thus, 6 percent interest means six cents charged for the use of $ 1 of principal borrowed for one year. Although the time may be less than, equal to, or greater than one year, most applications for loans are for periods of less than one year. For purposes of computing interest for short periods, the commercial year or 360 days is commonly used, but when large sums of money are involved, exact interest is computed on the basis of 365 days.
Which of the following would be a correct expression of an interest rate as stated in the equation for computing interest?
选项
A、Four
B、0.04
C、4
D、4/100
答案
B
解析
短文中明确说The rate is expressed as decimal fraction.只有B项的表述符合此要求。
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