# Math

posted by .

If the principal P = \$900, the interest I = \$882, and time t = 7 years. What is the rate? What is the future value?

• Math -

I will assume "simple interest", even though for 7 yrs that is very unusual

Rate = Interest/(prinicipal x time)
= 882/(900(7))
=.14
or 14%

check: I = PRT = 900(.14)(7) = 882

if it is compound interest ....
1782 = 900(1+i)^7
1.98 = (1+i)^7
take 7th root
1.102525 = 1+i
i = .102525

the annual rate would be 10.25%

this shows the tremendous difference between simple and compound interest over a significant time

## Similar Questions

1. ### math- algebra

If the principal P = \$900, the rate r = 4 1/2, and time t = 1 year, find the following: What is the amount of interest?
2. ### ALGEBRA

If the principal P = \$900, the rate r = 7 1/2 %, and time t = 1 year, find the following. What is the amount of interest?
3. ### ALGEBRA

If the principal P = \$900, the rate r = 7 1/2 %, and time t = 1 year, find the following. What is the amount of interest?
4. ### Math

If the principal P = \$900, the rate r = 5 1/2 %, and time t = 1 year, find the following. What is the amount of interest?
5. ### ALGEBRA

If the principal P = \$500, the interest I = \$525, and time t = 7 years, find the following. (a) What is the rate?
6. ### ALGEBRA

If the principal P = \$900, the rate r = 4 1 2 %, and time t = 1 year, find the following. (a) What is the amount of interest?
7. ### math

If the principal P = \$500, the interest I = \$250, and the rate r = 10%, find the following. (a) What is the time?
8. ### Finance

Find the future value of \$10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate?
9. ### finance

If the principal P=800, the interest I= 384, and time t = 6 years, find the following: What is the rate?
10. ### Math.

For question 1-4 for the interest. All rates are annual interest rates. 1) principal, \$400 rate, 5% time, 1 year. a. \$10 b. \$20 c. \$40 d. \$200 2) principal, \$1,000 rate, 8.5% time, 3 years a. \$255 b. \$170 c. \$22.5 d. \$17 3) principal, …

More Similar Questions