suppose that you plan on investing into a account paying simple interest. the formula for simple interest is…

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?

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?

Answer

Explanation:

Step1: Start with simple - interest formula

Given $I = Prt$.

Step2: Solve for $t$

Divide both sides of the equation $I = Prt$ by $Pr$. We get $t=\frac{I}{Pr}$, not $t=(I)t$.

Answer:

No, they would not be correct.