Question

Li invests money in a savings account. She wants to know the amount of simple interest that she will earn in 6 years at 3.75 percent. What additional information does she need to find this amount?

Answer 1

Principal

Explanation:

Since, the amount in the simple interest is,

Where, P is the principal amount,

r is the annual rate,

t is the time ( in years ),

Here, r = 3.75 %, t = 6 years,

Thus, By the above explanation,

It is clear that, we need the value of P, that is, principal to find the amount.

Answer 2

She needs the starting amount of money to create an equation.

Explanation:

The formula that she can use when she has the starting amount or the y-intercept is this one: f(t)=P(1+b)^t.

t=time

b=percent

P=starting value

The formula with the information given is: f(6)=P(1+3.75)^6

Hope this helps!

If not, I am sorry.