Suppose that you plan on investing into a account paying simple interest. The formula for simple interest is I = Prt, where I is the interest earned on a investment of P dollars, at the given rate r, over t years. If the banker tells you that the time for your investment is determine by the following t = (I) / r, would they be correct?

Question

Mathematics

Ian Armstrong

3 May, 17:33

Suppose that you plan on investing into a account paying simple interest. The formula for simple interest is I = Prt, where I is the interest earned on a investment of P dollars, at the given rate r, over t years. If the banker tells you that the time for your investment is determine by the following t = (I) / r, would they be correct?

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Answers (1)

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Akira Owen · Answer 1

No

Step-by-step explanation:

No.

i = prt is correct; its result is the simple interest earned.

If you want to solve for time, t, divide both sides by pr:

i / (pr) = t