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Question 78607This question is from textbook Elementary and Intermediate Algebra
: The amount of an investment of P dollars for t years at simple interest rate r is given by A=P+Prt.
Rewrite the formula by factoring out the greatest common factor on the right hand side.
Find A if $8300 is invested for 3 years at a simple interest rate of 15%
This question is from textbook Elementary and Intermediate Algebra
Answer by bucky(2189)   (Show Source):
You can put this solution on YOUR website! A = P + Prt
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The greatest common factor on the right side is P. Factoring it out results in the equation
becoming:
.
A = P(1 + rt)
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Although it doesn't directly say so, the problem implies that the 15% simple interest
rate is an annual rate. This means that r = 15% or equivalently, r = 0.15. And t is the
time in years. The problem tells you that t = 3. And finally the problem tells you that
the Principal (or amount invested) is $8300. Substituting these values into the equation
results in:
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A = 8300(1 + (.15*3))
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Multiplying the rate times the time simplifies this equation to:
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A = 8300(1 + 0.45)
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and adding the two terms in the parentheses make the equation become:
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A = 8300(1.45)
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Finally, doing the multiplication on the right side results in:
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A = 12035
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So investing $8300 for 3 years at a simple interest rate of 15% per year means that at
the end of the 3 years you will now have $12,035.
.
Making your money work for you.
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Hope this helps you to understand this type of problem.
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