Question
When plugging the rate into the financial formulas, like the compound interest formula and simple interest formula, you first have to convert the rate into decimal form.
True
False
True
False
Answers
GPT-4o mini
**True.**
When using financial formulas like the compound interest formula or the simple interest formula, the interest rate should be expressed in decimal form. For example, if the interest rate is 5%, you would convert it to decimal form by dividing by 100, resulting in 0.05.
When using financial formulas like the compound interest formula or the simple interest formula, the interest rate should be expressed in decimal form. For example, if the interest rate is 5%, you would convert it to decimal form by dividing by 100, resulting in 0.05.