How do I do this? -- can anyone give me a formula to find the answers?
Example:
Find the annual rate of simple interest~
P: 5000 / I: 650 / T: 3 years.
PV = nRT
I=PRT so solving for R
we get R=I/(PT)
plug in your values and evaluate.
Your answer will be a decimal which you have to convert to a percentage.
e.g. if your answer would be 0.038, the interest rate would be 3.8% (move the decimal 2 places to the right)
ignore this formula...sorry
actual formula is:
I = Prt
where I = interest, P = principle, r = rate, t = time in years
Thank you all very much!!
To find the annual rate of simple interest, you can use the formula:
I = Prt
where I is the interest, P is the principal (starting amount of money), r is the rate (interest rate per year), and t is the time in years.
In your example, you have P = $5000, I = $650, and t = 3 years.
To find the interest rate (r), you can rearrange the formula:
r = I / (Pt)
Substitute the values into the formula:
r = $650 / ($5000 * 3)
Evaluate this expression and you will get a decimal as the answer. To convert it to a percentage, move the decimal point two places to the right.
For example, if the answer is 0.038, the interest rate would be 3.8%.