Question

Use the simple interest formula (I = prt) to solve for the missing value in the following situations

Answer 1

Formula I = prt

p = 1000

r = 5%

t = ?

1000 ----------------------100%

275 ----------------------- x

x = (275 x 100) / 1000

x = 27.5%

275 = (1000)(0.05) t

t = 275 / (1000 x 0.05)

t = 275 / 50

t = 5.5 years

2.- p = I/rt

p = 15.75/(0.015 x 3)

p = 15.75 / 0.045

p = 350

Initial amount of money = $350