Question

Use the formula for simple interest, I = Prt, to find the indicated quantity.I = $72; r =6%; t = 6 months; P= ?

Answer 1

Step 1:

Write the interest formula

`\begin{gathered} \text{I = Prt} \\ I\text{ = \$72} \\ r\text{ = 6\% = }(6)/(100)\text{ = 0.06} \\ t\text{ = 6 months = }(6)/(12)\text{ = 0.5} \end{gathered}`

Step 2:

Substitute in the formula to find P

`\begin{gathered} 72\text{ = P }*\text{ 0.06 }*\text{ 0.5} \\ 72\text{ = 0.03P} \\ P\text{ = }(72)/(0.03) \\ \text{P = \$2400} \end{gathered}`

Final answer

P = $2400