Question
When we use the simple interest formula, what answer does it give us?
The total value in the account at the end of the time period.
The volume in the account
The interest earned or payed at the end of the time period.
The length of the hypotenuse
Answers
GPT-4o mini
The simple interest formula gives us **the interest earned or paid at the end of the time period**. The formula for simple interest is typically expressed as:
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the rate of interest (as a decimal),
- \( t \) is the time the money is invested or borrowed for (in years).
This calculation provides the interest amount only, not the total value in the account at the end of the time period. To find the total amount in the account, you would add the interest to the principal.
\[ \text{Interest} = P \times r \times t \]
where:
- \( P \) is the principal amount (the initial amount of money),
- \( r \) is the rate of interest (as a decimal),
- \( t \) is the time the money is invested or borrowed for (in years).
This calculation provides the interest amount only, not the total value in the account at the end of the time period. To find the total amount in the account, you would add the interest to the principal.