Final answer:
The simple interest formula is indeed I = prt, which is True. It is used to calculate interest by multiplying the principal amount, the rate of interest, and the time period together.
Step-by-step explanation:
The student asked if the simple interest formula is I = prt. The answer is True. Simple interest is indeed calculated using the formula I = prt, where 'I' stands for the interest amount, 'p' denotes the principal amount, 'r' is the rate of interest per period, and 't' is the time the money is borrowed or invested for.
Let's use an example to see how this works in practice. Suppose you deposit $100 in a bank account at a simple interest rate of 5% for one year. Here's how you would calculate the interest:
$100 (principal) × 0.05 (rate) × 1 (time) = $5
Therefore, the interest earned over one year would be $5.