posted by .

Find the interest to the nearest cent

Question #1
Amount: \$5432
Annual Interest Rate: 6.2%
Time: 3 years

Question #2
\$4500 at 5.5% for 4 1/2 years

Question #3
\$3680 at 6.75% for 2 1/4 years

Question #4
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

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).

# 3:

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.

## Similar Questions

1. ### compound interest

How do I solve these problems? Complete the table for a savings account in which interest is compounded continuously. 1. Initial Investment: \$1000 Annual % Rate: 3.5% Time to Double: ?

Ok my last question for this Interest stuff Woo! Ok this is the question: What is the annual interest rate if \$1600 is invested for 6 years and \$456 in interest is earned?
3. ### Math

A=P(1+r)^2 A= interest P= principle interest r= interest rate t= time in years If \$4500 invested at 7% interest compounded annually yeilds \$15600, for how many years was the money invested?
4. ### Math

If 3000 dollars is invested in a bank account at an interest rate of 6 per cent per year, find the amount in the bank after 12 years if interest is compounded annually Find the amount in the bank after 12 years if interest is compounded …
5. ### Alg2

Help....Help... Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the …
6. ### Alg 2

Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money …
7. ### Compound interest

Hello My teacher skipped over this and I have no clue how to do this or the equations. Help would be wonderful thank you If 6000 dollars is invested in a bank account at an interest rate of 10 per cent per year, find the amount in …