Question

Translate the following sentence into a formula:

“Simple interest is computed by finding the product of the principal amount p, the interest rate r, and the time t”.

Short answer

The formula is $I=p\times r\times t$.

Step-by-step solution

Step 1. Given information.

The given sentence is:

Simple interest is computed by finding the product of the principal amount, the interest rate, and the time.

Step 2. Write the variable.

Consider the Simple interest be I.

Also, consider the principal amount be p, the interest rate is r, and the time t.

Step 3. Write the expression.

The expression for the product of the principal amount p, the interest rate r, and the time t is $p\times r\times t$.

Step 4. Write the formula.

Since the simple interest is equal to $p\times r\times t$,

Therefore,

$I=p\times r\times t$

This is the required formula.