Question

Hanna puts $4,383 in a savings account with an annual interest rate of 5.2 percent for 3 years. Into which variable should she substitute 4,383 in the simple interest formula mc027-1.jpg?

Answer 1

Answer:

The variable would be P.

Step-by-step explanation:

Since, the simple interest formula is,

$I=\frac{P\times r\times t}{100}$

Where,

P = Principal amount,

r = annual interest rate,

t = time in years,

Since, here $4,383 is invested,

So, principal amount = $4,383,

I.e. P = $4,383

Thus, 4,383 would be substituted into variable P.