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What is the formula for simple interest?
a. (rate) x (interest) (principal) x (time)
b. Interest (principal) x (rate) x (time)
C.
interest principal
rate
time
d. rate (interest) x (principal) x (time)
Please select the best answor

Verified Answer :

GinnyAnswer

To find the formula for simple interest, we need to recall the standard formula used in financial mathematics. The formula for simple interest is:

\(\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]\)

Now let's match this formula with the given options:
- a. (rate) x (interest) (principal) x (time): This is incorrect since it doesn't structure the formula properly.
- b. Interest = (principal) x (rate) x (time): This correctly represents the formula for simple interest.
- c. interest principal / rate / time: This is incorrect as it doesn't structure the formula in the multiplicative form needed.
- d. rate (interest) x (principal) x (time): This is also incorrect since the placement and relationship among the terms are not accurate.

Therefore, the correct option is:

b. Interest = (principal) x (rate) x (time)

So, the answer is option b.

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