Question

The equation below can be used to determine I, the am

Answer 1

Given :

The equation below can be used to determine I (simple interest) on a loan as follows :

$I=Prt$ ...(1)

P is principal, r the rate of the loan,  t is the length of the loan in years.

We need to find the equation to solve in terms of r. We can find the value of P.

Dividing both sides of equation (1) by rt. So,

$\dfrac{I}{rt}=\dfrac{Prt}{rt}\\\\P=\dfrac{I}{rt}$

So, P can be solved as : $P=\dfrac{I}{rt}$.