Accumulate 3,200 for 2 years and 6 months at 5 1/2% simple discount.
P = Po + Po*r*t = $3,200
Po + Po*0.055*2.5 = 3200
Solve for Po, the initial principal or
investment.
To calculate the simple discount, we'll first find the discount amount and then subtract it from the initial amount.
Step 1: Calculate the discount amount:
Discount = Principal x Rate x Time
Principal = $3,200
Rate = 5 1/2% = 5.5%
Time = 2 years + 6 months = 2.5 years
Discount = $3,200 x 5.5% x 2.5
Discount = $3,200 x 0.055 x 2.5
Discount = $440
Step 2: Calculate the final amount after the discount:
Final amount = Principal - Discount
Final amount = $3,200 - $440
Final amount = $2,760
Therefore, the final amount after the simple discount of 5 1/2% for 2 years and 6 months on an initial amount of $3,200 would be $2,760.
To calculate the accumulated amount after 2 years and 6 months at a simple discount rate of 5 1/2%, you can follow these steps:
1. Convert the given discount rate to decimal form:
5 1/2% = 5.5/100 = 0.055
2. Determine the simple discount for the given time period:
Simple Discount = Principal Amount * Discount Rate * Time
Given:
Principal Amount = $3,200
Discount Rate = 0.055 (as calculated in step 1)
Time = 2 years and 6 months
To convert the time to years:
6 months = 6/12 = 0.5 years
Time = 2 years + 0.5 years = 2.5 years
Simple Discount = $3,200 * 0.055 * 2.5 = $440
3. Calculate the accumulated amount after the discount:
Accumulated Amount = Principal Amount - Simple Discount
Accumulated Amount = $3,200 - $440 = $2,760
Therefore, the accumulated amount after 2 years and 6 months at a 5 1/2% simple discount is $2,760.