After one year you will have 100 10 110 and after two years you will have 110 10 121. T Time period in years. Example 1 Remember when symbols are written side by side it means to multiply so PRTmeans PRT.
If the investment or loan is over a longer period we need to take this into account.
We use the symbol n to indicate time period which must be given in years. This gives us inter- est per year. 50000 is borrowed and the rate of interest is 10 per annum. Calculate rate of interest in decimal solve for r r nAP 1nt - 1.