Answer:
- Interest = $100
- Principal = $6000
- Rate = 5%
- Time = 1.5 years
Step-by-step explanation:
The relationship between the four variables is ...
i = Prt . . . . where t is in years
1. The formula can be used directly:
i = $5000·0.02·1 = $100
For the following problems, start with the above formula and divide by the coefficient of the variable you want to find.
2. P = i/(rt) = $90/(0.03·0.5) = $90/0.015 = $6000
3. r = i/(Pt) = $100/($1000·2) = .05 = 5%
4. t = i/(Pr) = $356.25/($9500·0.025) = 356.25/237.50 = 1.5 . . . years
