Question

Simple Interest FormulasThe interest of a simple interest investment or loan can be computed with the formulaI = Prt.The end amount of a simple interest investment or loan can be computed with the formulaA = P(1 + rt).Use these formulas to evaluate the amounts indicated below.Let P = $5, 100, r = 8.2%, and t = 3 years. Determine the interest, I, at the end of 3 years for a simple interestloan.Interest = $dollarsLet P = $3,500, T = 6.7%, and t = 9 years. Determine the total end amount, A, at the end of 9 years for asimple interest loan.т-End Amount = $dollarsQuestion Help: D VideoWritten Example D Post to forumSubmit Question

Answer 1

First part:

P = $5100

r = 8.2% = 8.2/100 = 0.082

t = 3 years

The rule of the simple interest is

`I=\text{prt}`

Substitute the given value in the rule

`\begin{gathered} I=5100(0.082)(3) \\ I=\text{ \$1254.6} \end{gathered}`

The interest at the end of 3 years for a simple interest loan is $1254.60

Second part:

P = $3500

r = 6.7% = 6.7/100 = 0.067

t = 9 years

The rule of the end amount is

`A=P(1+rt)`

Substitute the given values in the rule

`\begin{gathered} A=3500(1+0.067*9) \\ A=\text{ \$5610.50} \end{gathered}`

The total at the end of 9 years for a simple interest loan is $5610.50