Using the formula for simple interest and the given​ values, find I. P=$700​; r=9%​; t=4 years​; I=​?

Question

Using the formula for simple interest and the given​ values, find I.

P=$700​; r=9%​; t=4 years​; I=​?

Answer 1

Hi Sean

Check the definition of Simple Interest

I = Prt

Remember to write the rate as a decimal

I = Money earned over time on the investment

P =Principal the starting amount of the investment

r = interest rate per year

t = time in years

For you data P=$700​; r=9%​; t=4 years​; I=​? just plug it in

You want to look up these formulas to make sure you are using the correct one, for your class

Answer 2

Hey Sean,

The formula for simple interest is...

I = P(1+r·t)

... where:

I = future amount

P = present amount

r = annual interest rate

t = time in years

To solve, plug your numbers into the simple interest equation and work out the arithmetic.

Hope this helps!