SOLUTION: if the simple interest on $1800 exceeds the interest on $1650 in 3 years by $45, find the rate of interest.

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Question 1111903: if the simple interest on $1800 exceeds the interest on $1650 in 3 years by $45, find the rate of interest.
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


I = Prt

The interest on $1800 for 3 years is $45 more than the interest on $1650 for 3 years:

1800%28r%29%283%29+=+1650%28r%29%283%29%2B45
150%28r%29%283%29+=+45
450r+=+45
r+=+.10

The interest rate is .10, or 10%.

Note that the second line of the calculations shown says that the interest for 3 years on the additional $150 is $45. It would be possible, with a bit of logical reasoning, to use that equation as your starting point for solving the problem.