Question 1194379
if this is simple interest, then i think it can be solved in the following manner.
simple interest formula is i = p * r * n
i is the interest.
p is the principal.
r is the interest rate per time period.
n is the number of time periods.
with 5000 due in 3 months, the formula becomes i = 5000 * .16/12 * 3 = 200, and 2000 due in 6 months, becomes i = 2000 * .16/12 * 6 = 160 for total interest charge of 360.
for 3000 due now, there is no interest charge.
for the balance due in 12 months, the formula becomes i = b * .16/12 * 12.
since i must be equal to 360, then the formula becomes 360 = b * .16/12 * 12.
solve for b to get b = 360 / (.16/12 * 12) = 2250.
mister langa will get the same total interest whether maxwell pays him 5000 in 3 months and 2000 in 6 months or 3000 now and 2250 in 12 months.
i'm not 100% certain that this is the way to analyze it, but it makes sense in terms of the simple interest formula and how it' used.
here's a reference on the simple interest formula.
<a href = "https://www.cuemath.com/commercial-math/simple-interest/" target = "_blankk">https://www.cuemath.com/commercial-math/simple-interest/</a>
not that they use percent interest and then divide it by 100.
i use interest, which is percent interest already divided by 100.
16% / 100 = .16
.16 * 100 = 16%