Question

the formula for simple interest is $i = prt$, where $i$ is the interest earned, $p$ is the principal, $r$ is the interest rate and $t$ is the number of years. solve the formula for $p$ in terms of $r$, $i$ and $t$.

Explanation:

Step1: Start with the formula

We have the simple - interest formula $I = Prt$. Our goal is to isolate $P$ on one side of the equation.

Step2: Divide both sides by $rt$

To solve for $P$, we need to get rid of the $rt$ that is multiplied by $P$. We can do this by dividing both sides of the equation by $rt$ (assuming $rt
eq0$).

Dividing both sides of $I = Prt$ by $rt$ gives us:

$\frac{I}{rt}=\frac{Prt}{rt}$

Simplifying the right - hand side, since $\frac{rt}{rt} = 1$ (for $rt
eq0$), we have $\frac{I}{rt}=P$.

Answer:

$P=\frac{I}{rt}$