document.write( "Question 1196148: please help with equation for interest
\n" ); document.write( "if a principle of 2000 at rate of 6% earns 300, how much will principle of 4000 earn at 8%? \n" ); document.write( "

Algebra.Com's Answer #828861 by ikleyn(52788) $\"\"$ $\"About$

You can put this solution on YOUR website!
.
\n" ); document.write( "please help with equation for interest
\n" ); document.write( "if a principle of 2000 at rate of 6% earns 300, how much will principle of 4000 earn at 8%?
\n" ); document.write( "~~~~~~~~~~~~~~~~~~~~\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "In this post, the problem is formulated INCORRECTLY.\r
\n" ); document.write( "\n" ); document.write( "The correct formulation is as follows:\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "    +-----------------------------------------------------------------+\r\n" );
document.write( "    |   If a principal of 2000 at simple annual interest rate of 6%   |\r\n" );
document.write( "    |    earns 300 in some time interval, how much will a principal   |\r\n" );
document.write( "    |          of 4000 earn at 8% simple annual interest rate         |\r\n" );
document.write( "    |                 during the same time interval ?                 |\r\n" );
document.write( "    +-----------------------------------------------------------------+\r\n" );
document.write( "

\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Solution\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "

\r\n" );
document.write( "Use the formula for simple interest \r\n" );
document.write( "\r\n" );
document.write( "    I = P*r*t,    (1)\r\n" );
document.write( "\r\n" );
document.write( "P is the principal, t is the time (in years), r is the annual simple interest rate,\r\n" );
document.write( "I is the interest amount.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "For the first scenario, we have\r\n" );
document.write( "\r\n" );
document.write( "    300 = 2000*0.06*t.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "From this equation, find time t =  = 2.5 years.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "So, the time period is 2.5 years.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Apply the formula (1) AGAIN, this time for the second scenario\r\n" );
document.write( "\r\n" );
document.write( "    I = 4000*0.08*2.5 = 800.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "ANSWER.  The second interest amount is 800.\r\n" );
document.write( "

\r
\n" ); document.write( "\n" ); document.write( "Solved and thoroughly explained.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "--------------------\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "To see many other similar (and different) solved problems on simple interest accounts, look into the lesson\r
\n" ); document.write( "\n" ); document.write( " - Simple interest percentage problems \r
\n" ); document.write( "\n" ); document.write( "in this site.\r
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( "Learn the subject from there.\r
\n" ); document.write( "
\n" ); document.write( "
\n" ); document.write( "\n" ); document.write( " \n" ); document.write( "

\n" );