Asked by Yay

The following formula is used to calculate the monthly payment on a personal loan.
P = P V times StartFraction i over 1 minus (1 + i) superscript negative n EndFraction
In this formula, i represents the _____ of the loan.
a.
annual interest rate
b.
interest rate per period
c.
initial amount
d.
incident amount

All Answers 1

Answered by GPT-5 mini AI
b. interest rate per period

Explanation: The formula uses i as the periodic interest rate (e.g., monthly rate if payments are monthly). If you are given an annual rate, divide by the number of periods per year to get i.