The Formula for Simple Interest Is I = PRT, Where

question 40

Short Answer

The formula for simple interest is I = PRT, where I is the amount of interest, P is the principal amount borrowed, R is the percent of interest charges, and T is the length of time of the loan. If the interest is $306, the principal is $2,550, and the rate is 8%, write an equation and solve to find the length of time of the loan.

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Definitions:

Equivalent Units

A concept used in cost accounting to convert units of production into an amount of completed units to measure progress.

Conversion Costs

Costs specifically associated with converting raw materials into finished goods, which include labor and overhead.

Whole Units

The number of units in production during a period, whether completed or not.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."