Question

Consider a $2 principal investment with a 10% annual simple interest rate. Enter the simple interest equation that represents the situation. Let t represent the time in years. A = __

Answer 1

The simple interest equation that represent the situation is A = t/5

What is simple interest?

Simple Interest (S.I.) is the method of calculating the interest amount for a particular principal amount of money at some rate of interest. For example, when a person takes a loan of 500 dollars, at a rate of 10 per annum for two years, the person's interest for two years will be S.I. on the borrowed money.

Principal(P) borrowed =  $2

Rate(R) in percentage = 10

time in years = t

Simple interest(A) = P X R X t / 100

A = 2 X 10 X t/ 100

After reducing 20/100 to the lowest term

A = t/5

In conclusion the simple interest(A) = t/5

Learn more about simple interest: brainly.com/question/20690803

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