Question

The simple interest on a principal amount, P, borrowed for T years at R% annual interest is given by the following formula. Which of the following describes the relationship between the variables of the simple interest formula?

1.P depends on R and T
2.R depends on P and T
3.I depends on P, R, and T
4.R depends on I

Answer 1

3.

The formula for the question is

I = P R T
Interest = Principle x Rate x Time

Answer 2

3. I depends on P, R, and T.

Explanation:

We have been given the simple interest formula
`I=PRT`, where,

I = Amount of simple interest,

P = Principal amount,

T = Time in years,

R= Interest rate.

The bigger principal amount and higher interest rate for a long period of time will result in big amount of interest, while small principal amount at a smaller interest rate and for a small period of time will result in small amount of interest.

Since amount of interest depends on principal amount, rate and time, therefore, 3rd option is the correct choice.