Simple interest

[Blake corey]

If Jonathan plans to invest P 48, 700 that pays 18%, how much will he earn after 13 years?

Is prt the formula for this?

 

[lookagain]

If Jonathan plans to invest P 48, 700 that pays 18%, how much will he earn after 13 years?

Is prt the formula for this?

Is this the equivalent of the question?

"If Jonathan plans to invest a principal of $48,700 that pays 18% annually, how much interest will he earn after 13 years?"

If so, then the simple interest formula is Prt.

P = principal
r = rate as a decimal
t = time in years


The formula for the total amount at the end of the years the interest rate is applied is \(\displaystyle \ \) P + Prt \(\displaystyle \ = \ \) P(1 + rt).

 

[firemath]

@lookagain beat me to it. Good post!

 

[Blake corey]

Is this the equivalent of the question?

"If Jonathan plans to invest a principal of $48,700 that pays 18% annually, how much interest will he earn after 13 years?"

If so, then the simple interest formula is Prt.

P = principal
r = rate as a decimal
t = time in years


The formula for the total amount at the end of the years the interest rate is applied is \(\displaystyle \ \) P + Prt \(\displaystyle \ = \ \) P(1 + rt).

Okay got it thank you.