Question

If a principal of P dollars is borrowed for a period of t years at a per annum interest rate r, expressed as a decimal, the interest I charged is _____=_____. Interest charged according to this formula is called ____.

Short answer

The answers are$I,\frac{Ptr}{100}$and simple interest.

Step-by-step solution

Step 1. Given information

We have to find the formula for interest charged and how it is called as.

Step 2. Use the definition of Simple interest

If a principal of $P$dollars is borrowed for a period of $t$years at a per annum interest rate $r$, expressed as a decimal, the interest $I$charged is localid="1647077281421" $\mathit{I}\mathbf{=}\frac{\mathbf{P}\mathbf{t}\mathbf{r}}{\mathbf{100}}$. Interest charged according to this formula is called Simpleinterest.

The answers are localid="1647077966395" $\mathit{I}\mathbf{,}\mathbf{}\frac{\mathbf{P}\mathbf{t}\mathbf{r}}{\mathbf{100}}$and simple interest.