The total payment to a lender for a one-period simple loan is A) (P + i)ⁿ. B) P + i. C) i(1 + i). D) P(1 + i).

Question

Quizplus · Accepted Answer

The total payment for a one-period simple loan is the principal amount plus the interest amount earned by the lender. Therefore, the formula for the total payment is P(1 + i), where P is the principal amount and i is the interest rate. Option D is a correct representation of this formula.

The Total Payment to a Lender for a One-Period Simple