Is this correct
Business and finance. The simples interest I on a principle of P dollars at interest rate r for time t, in years, is given by I= Prt. Find the simple interest on a principal of $6000 at 3% for 2 years.
Simple Interest = Principle x Rate x Time (in years)
Yes, the formula for simple interest is correct: Simple Interest = Principle x Rate x Time (in years).
To find the simple interest on a principal of $6000 at 3% for 2 years, you can use the formula directly. Plug in the values into the formula as follows:
Principle (P) = $6000
Rate (r) = 3% = 0.03 (decimal form)
Time (t) = 2 years
Now you can substitute these values into the formula:
I = P x r x t
I = $6000 x 0.03 x 2
To calculate the simple interest, perform the multiplication:
I = $6000 x 0.03 x 2
I = $360
Therefore, the simple interest on a principal of $6000 at 3% for 2 years is $360.