Question

Simple interest I in dollars is calculated using the formula I=prt. Here, p represents the principle, or amount, in dollars that is invested or borrowed; r represents the annual interest rate, expressed as a percent; and t represents time, in years. Find the value of the remaining variable in the simple interest formula. (Hint: Write percent as decimals.)

p=$300, r=8%, t=6 years

I = ?

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \ 300\\ r=rate\to 8\%\to \frac{8}{100}\dotfill &0.08\\ t=years\dotfill &6 \end{cases} \\\\\\ I=(300)(0.08)(6)\implies I=144$