The amount of simple interest is equal to the product of the principal times ____ times ____.
A) (1 + rate per time period); the number of time periods
B) (1 + rate per time period); (the number of time periods - 1)
C) rate per time period; the number of time periods
D) rate per time period; (the number of time periods - 1)

Question

Quizplus · Accepted Answer

The formula for simple interest is I = Prt, where P is the principal, r is the rate per time period, and t is the number of time periods. Therefore, the amount of simple interest is equal to the product of P, r, and t, or simply Prt. Choice C is the only option that includes the correct variables and their respective values.

The Amount of Simple Interest Is Equal to the Product