Question

Number 13 I need help with

Answer 1

1. Interest = $100
2. Principal = $6000
3. Rate = 5%
4. Time = 1.5 years

Explanation:

The relationship between the four variables is ...

i = Prt . . . . where t is in years

1. The formula can be used directly:

i = $5000·0.02·1 = $100

For the following problems, start with the above formula and divide by the coefficient of the variable you want to find.

2. P = i/(rt) = $90/(0.03·0.5) = $90/0.015 = $6000

3. r = i/(Pt) = $100/($1000·2) = .05 = 5%

4. t = i/(Pr) = $356.25/($9500·0.025) = 356.25/237.50 = 1.5 . . . years