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Sagot :
The whole amount to which the rate is applied is called the base.
What do we mean by base?
The base is the amount that is invested at a certain rate.
What do we mean by rate?
The rate is the factor that is multiplied by the base to get the new amount.
What do we mean by the term?
The term is the period in which the rate is multiplied by the base.
∴ We can see that the whole amount to which the rate is applied is known as the base.
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