Question

Solve I =prt for p when I =5,480,r =.04, and t=7. Round your answers to two decimal pla

Answer 1

We are asked to find the simple interest associated with a principal of 5480 , an annual rate of 0.04 (4%) and at the end of 7 years:

We use the simple interest formula:

I = P r t

in our case: I = (5480) (0.04) (7) = 1534.4

So the interest is: 1534.40

We answer using two decimal places because this is refering to cents of a dollar.