Answer:
simple interest
Step-by-step explanation:
this is because r is interest rate, p is principal, and t is time
Answer:
simple interest
Step-by-step explanation:
Simple interest rate is defined as: I = p * r * t. So you're taking the principle amount (initial amount loaned) and multiply it by the interest rate. This gives you the interest rate in a year (usually, depends on time unit of t). Generally speaking, it gives you the interest over a specific amount of time. Now multiply it by the amount of time that's passed. So you're just calculating the total amount of interest. So the I stands for the simple interest.
