Summary: Solving Simple Interest Applications
Key Concepts
- Simple interest
- If an amount of money, [latex]P[/latex] , the principal, is invested for a period of [latex]t[/latex] years at an annual interest rate [latex]r[/latex] , the amount of interest, [latex]I[/latex] , earned is [latex]I=Prt[/latex]
- Interest earned according to this formula is called simple interest.
Glossary
- simple interest
- If an amount of money, [latex]P[/latex] , the principal, is invested for a period of [latex]t[/latex] years at an annual interest rate [latex]r[/latex] , the amount of interest, [latex]I[/latex] , earned is [latex]I=Prt[/latex] . Interest earned according to this formula is called simple interest.
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CC licensed content, Specific attribution
- Prealgebra. Provided by: OpenStax License: CC BY: Attribution. License terms: Download for free at http://cnx.org/contents/[email protected].
