Could ANYONE please explain this formula to me and what the words mean...

Question

I=prt (Intrest= principle x rate x time)

Answer 1

Let's suppose you borrow $500 from your parents. That's the principal. They charge you 2% annual interest. You pay them back at the end of two years.

I = 500 * 0.02 * 2

Multiply to find the amount of interest you'll pay.

Answer 2

Your a lifesaver! thank you so much!!

Answer 3

You're very welcome!