Question

the principal p is borrowed at a simple interest rate r for a period of time t. find the loan's future value g P = 700, r = 8.25, t = 3 months

Answer 1

Explanation:

I = PRT

I = 700(0.0825)(1/4) = 14.44

Because the interest is usually in percentage and it's impossible to have 825% as your interest rate. So the actual interest rate has to be 0.0825.

The formula above calculated the interest, if you want the total, you will need to add 700 to that number.

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Here's a small quick example of the formula that should help.

Answer 2

Hey there!

Simple interest formula: I=PRT

I=700(8.25)(0.25)

I=1443.75

Hope this helps :)