Question

When calculating simple interest, what must you do if you want to invest for months or weeks instead of years?

a.
Simple interest only pays yearly, so you should find another investment.
b.
The simple interest calculation does not use those units, so you should just calculate as normal.
c.
The units have changed, so the interest formula switches to I·t=P·r.
d.
Interest rates are annual, so you must convert the units into years.

Answer 1

D is the answer to your question

Answer 2

The formula for calculating the simple interest is given by

`I=Prt`

Here, P = Principle amount

r = annual interest rate in decimal

t = time in years.

Now, if we invest for months or week then in order to find the simple interest, we must convert the units in years.

Therefore, d is the correct option.

d) Interest rates are annual, so you must convert the units into years.