Simple Interest Formula: Solving for Principal Amount (P)
What is the formula for simple interest and how can we solve it for the principal amount (P)?
The formula for simple interest is i = prt, where i is the interest, p is the principal amount, r is the rate of interest, and t is the time period. To solve this formula for the principal amount (P), what are the options?
Answer:
The correct answer is option (1): p = i / (rt).
The formula i = prt represents the simple interest formula, where we need to find the principal amount, P. By isolating P in the formula, we can determine that P = i / (rt). This means that the principal amount is equal to the interest divided by the product of the rate of interest and time period.
It's important to understand that in solving formulas like this, the goal is to isolate the variable we are interested in, which in this case is the principal amount, P. By dividing both sides of the equation i = prt by rt, we can find the correct expression for P.
When rearranging formulas, always remember to perform the same operation on both sides of the equation to maintain balance and accurately isolate the variable of interest.