How did the formula "P x R x T/ 100" be developed to find the interest where P=Principal, R=rate of interest and T=time? Please explain what PRT means and why it is being divided by 100.
P stands for Principal or original amount on which interest will be calculated.
R stands for percentage of interest income that can be earned on principal.
T time for which money is invested.
You are not required to know the derivation of the formula, only its applications are required to be done.
R stands for percentage of interest income that can be earned on principal.
T time for which money is invested.
You are not required to know the derivation of the formula, only its applications are required to be done.