What would be a purchasing example and how can the I Prt fo

What would be a purchasing example and how can the I = Prt formula be applied to this example?

What is an example of I = prt to a purchasing example?

I=prt is simple interest and usually applied to loans or purchases less than 1 year.

Example:

Susie buys a lawn mower for $3000 at an interest rate of 5% for 1 year. What is the amount of interest she will pay?

I = prt

I = interest; p = principal amount; r = interest rate; t = time

`I = 3000* 0.05* 1`

`I = 150`

Susie will pay $150 in interest on the lawnmower.