Question

Susan borrows $4500 from the bank to purchase new furniture. The bank finances for 5 years at 8% simple interest. How much will Susan pay for the furniture. (I = Prt) (A = I + P) PLS HELP ME I HAVE TO TURN THIS IN SOON!!!!!!!!!!!!!!!!!!!

Answer 1

$6300

Explanation:

A = P(1 + rt)

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

t = Time Period involved in months or years

P = $4500

t = 5 years

r = 8% = .08

A = P(1 + rt)

A = 4500 ( 1 + (.08*5))

A = 4500 ( 1 + .4)

A = 4500 (1.4)

A = $6300

Susan will pay $6300 for the furniture

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The equation I used is the same as what you were given:

I = Prt

A = I + P Re-write as I = A - P

So you plug in A - P for I:

A - P = Prt Add P to each side

A - P + P = Prt + P

A = Prt + P Pull P out

A = P(rt + 1) Re-arrange

A = P(1 + rt)

Same equation!