What does I=prt mean in 7th grade verison?

3 answers

I = PRT

This is a formula for calculating simple interest.

Interest = Principal * Rate * Time

Example, you put $500 in a saving account, at 3% interest per year.

To find the interest after two years,
P = $500, R = 0.03, T = 2
I = 500 * 0.03 * 2
I = 1000 * 0.03
I = $30
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