the principal amount of money borrowed in the bank varies jointly as the rate and time and inversely as the interest
Answer:
The Simple Interest Formula is given by
Simple Interest = Principal × Interest Rate × Time
I = Prt where
The Principal (P) is the amount of money deposited or borrowed.
The Interest Rate (r) is a percent of the principal earned or paid.
The Time (t) is the length of time the money is deposited or borrowed.
Step-by-step explanation:
Example:
Sarah deposits $4,000 at a bank at an interest rate of 4.5% per year. How much interest will she earn at the end of 3 years?
Solution:
Simple Interest = 4,000 × 4.5% × 3 = 540
She earns $540 at the end of 3 year
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