What does this interest formula stand for:
PRT=I
P=the principal ( the amount borrowed)
R=the rate(percent)
T=time the amount is borrowed
I=interest
You must multiply P R T together to get the interest
The interest formula, PRT=I, is used to calculate simple interest. Let me break down what each variable stands for:
P: Principal amount or the initial sum of money being borrowed or invested.
R: Interest rate per period, usually expressed as a decimal or a percentage.
T: Time or the length of the period, typically measured in years.
I: Interest, which is the amount of money earned or charged on the principal amount.
To use this formula, you need to plug in the values for P, R, and T, and then solve for I. Multiplying the principal (P) by the interest rate (R) and the length of time (T) will give you the interest (I) accumulated or charged over that period.