Wednesday

July 23, 2014

July 23, 2014

Posted by **Barry** on Sunday, July 31, 2011 at 11:49pm.

- math- algebra -
**MathMate**, Monday, August 1, 2011 at 5:22amInterest for the first year is the principal, P=$900 multiplied by the rate of interest, r=0.045, multiplied by the number of periods, n=1.

So interest

I=$900*0.045*1=$40.5

The future value is the sum of the interest and the principal.

Note that in this case (n=1), the interest is the same whether it is simple or compound. In general, the question should specify whether it is simple interest or compound interest. In the latter case, the compounding period should also be specified (yearly, quarterly, monthly, etc.)

**Related Questions**

ALGEBRA - If the principal P = $900, the rate r = 4 1 2 %, and time t = 1 year, ...

ALGEBRA - If the principal P = $900, the rate r = 7 1/2 %, and time t = 1 year, ...

Math - If the principal P = $900, the rate r = 5 1/2 %, and time t = 1 year, ...

ALGEBRA - If the principal P = $900, the rate r = 7 1/2 %, and time t = 1 year, ...

ALGEBRA - If the principal P = $700, the rate r = 6 1 2 %, and time t = 1 year, ...

math - If the principal P = $700, the rate r = 8 1 2 %, and time t = 1 year, ...

math - the total amount of interest on this loan of $6000 for 150 days is $210....

ALGEBRA - If the principal P = $500, the rate r = 5 1 2 %, and time t = 1 year, ...

math - The amount of money in an account with continuously compounded interest ...

business math - Using the exact interest method (365 days), find the amount of ...