The Principal Amount Of Money Borrowed In The Bank Varies Jointly…
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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