I need help figuring out simple interest and the balance of an account. Example P = $525, r = 6%, t + 9 years
The formula for simple interest is,
I = PRT (Interest = Principle * Rate * Time)
Balance of account ?
t + 9 years?
two sums of money totaling 15000 earn 5% and 7% annual interest. if the total interest from both investments amounts to $870, how much is invested at each rate?
Sure! I can help you with that.
To calculate simple interest, you'll need three variables: principal amount (P), interest rate (r), and time (t).
In this case, you have:
Principal amount (P) = $525
Interest rate (r) = 6% (as a decimal, r = 0.06)
Time (t) = 9 years
The formula for calculating simple interest is:
Interest (I) = P * r * t
Now, let's substitute the given values into the formula:
I = $525 * 0.06 * 9
Multiply the numbers:
I = $283.50
So, the simple interest after 9 years is $283.50.
To find the balance of the account, you need to add the interest to the principal amount.
Balance = Principal amount + Interest
Balance = $525 + $283.50
Balance = $808.50
Therefore, the balance of the account after 9 years would be $808.50.