Question

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 1

The banker's statement about the formula for determining the time for an investment is incorrect.

Step-by-step explanation:

The banker's statement that the time for your investment is determined by the formula t = (I)/r is incorrect.

The correct formula to calculate the time for a simple interest investment is t = I/(P imes r).

The formula I = Prt is used to calculate the interest earned on an investment of P dollars at a given rate r over t years.