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

  • Math -

    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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