When we use the simple interest formula, what answer does it give us?

Question

the total value in the account at the end of the time period
the volume of the account
the interest earned or payed at the end of the time period
the length of the hypotenuse

Answer 1

The simple interest formula calculates the interest earned or paid at the end of the time period.

The formula for simple interest is: \[ I = P \times r \times t \]

where:

• \( I \) is the interest,
• \( P \) is the principal amount (the initial amount of money),
• \( r \) is the annual interest rate (in decimal),
• \( t \) is the time the money is invested or borrowed (in years).

So, the correct answer is: the interest earned or paid at the end of the time period.