Card 1 of 20
Why must a percentage be converted to a decimal before calculating interest?
A
To avoid an answer 100 times too large - for example, 3% becomes 0.03.
B
simple interest=P×R×T
\text{simple interest} = P \times R \times T
simple interest=P×R×T
C
The percentage was not converted to a decimal.
D
£200,000×0.0445=£8,900
£200{,}000 \times 0.0445 = £8{,}900
£200,000×0.0445=£8,900
yearly;
£8,900÷12=£741.67 £8{,}900 \div 12 = £741.67 £8,900÷12=£741.67monthly.
Card 1 of 20
2.8.5 Effect of interest rate changes Flashcards
20 flashcards on OCR GCSE Economics 2.8.5 Effect of interest rate changes: the key terms, formulae and calculations you need to recall for Component 01 and Component 02.