Question

Find the time. Round to the nearest month given the following: Principal: $3,500Rate: 8.25%Simple Interest: $143.50

Answer 1

- The question tells us to find the time in months given that the Principal is $3,500, the Rate is 8.25%, and the Simple Interest is $143.50.

- In order to solve this question, we simply need to apply the Simple interest formula given below:

`\begin{gathered} I=P* R*(T)/(12) \\ \\ \text{where,} \\ P=\text{ Principal} \\ R=\text{ Rate} \\ T=\text{ Time in months} \end{gathered}`

- We have all the parameters but the Time, thus, we can proceed to calculate the value of T as follows:

`\begin{gathered} P=3500 \\ R=8.25\text{ \%}=(8.25)/(100) \\ \\ I=143.50 \\ \\ 143.50=3500*(8.25)/(100)*(T)/(12) \\ \\ \text{Make T the subject of the formula:} \\ T=143.50*(100*12)/(3500*8.25) \\ \\ T=5.964\text{ months}\approx6\text{months} \end{gathered}`

Final Answer

The time in months is 6 months