posted by Kenya on .
Find the interest to the nearest cent
Annual Interest Rate: 6.2%
Time: 3 years
$4500 at 5.5% for 4 1/2 years
$3680 at 6.75% for 2 1/4 years
5.5% for 1 3/4 years on $2543
I'm sorry for so many but I just don't understand them =]
The basic formula is Interest equals principal times rate times time or I = PRT.
For # 1:
I = 5432 * 0.062 * 3
I = 1010.35
Follow this pattern. We'll be glad to check your answers.
So for #2 the answer is 1113.75. But I still don't understand #3 and #4 because I don't know how to multiply the years. You know 2 1/4 and 1 3/4
You're right for # 2. :-)
It's easiest to use the decimal equivalents for the fractions of a year: 2 1/4 (2.25) and 1 3/4 (1.75).
I = 3680 * 0.0675 * 2.25
Oh yea! It's like your counting by quarters. Man I forgot. My bad =] Thank You for the great help maybe I might come back for more help today. Again thanks for the great help!!
You're very welcome. And I look forward to helping you again.
I have a question, is the different wording of #4 significant? Because it says 5.5% for 1 3/4 years on $2543. I am not having any trouble with the others, just this one.