Joanne and Ed Greenwood built a new barn with an attached arena. To finance the loan, they paid $1,261 interest on $52,600 at 5%. What was the time, using exact interest?
19.52
Did you mean simple interest?
if so,
PRT = I
52600(.05)T = 1261
T = 1261/(.05(52600)) = .4795 years
or 175 days
check:
52600(.05)(175/365) = 1260.96 or $1261
To find the time using exact interest, we can use the formula:
Interest = Principal × Rate × Time
In this case, the principal is $52,600, the rate is 5%, and the interest is $1,261. Let's plug those values into the formula and solve for time:
$1,261 = $52,600 × 0.05 × Time
Now we can solve for Time:
Time = $1,261 / ($52,600 × 0.05)
Time = $1,261 / $2,630
Time ≈ 0.479
Therefore, the time using exact interest is approximately 0.479 years or about 5.75 months.
To find the time, using exact interest, we need to use the formula for simple interest:
Interest = Principal × Rate × Time
In this case, the principal is $52,600, the rate is 5%, and we're given the interest as $1,261. We can rearrange the formula to solve for time:
Time = Interest / (Principal × Rate)
Substituting the given values:
Time = $1,261 / ($52,600 × 0.05)
Time = $1,261 / $2,630
Time ≈ 0.48 years
Therefore, the time, using exact interest, is approximately 0.48 years.