How much should you invest at 3.2% interest in order to earn $60 in 10 months?
The formula to calculate simple interest is:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (the amount invested)
r = Interest rate (as a decimal)
t = Time period (in years)
We can rearrange the formula to solve for the principal amount (P):
P = I / (r * t)
Substituting the given values:
P = 60 / (0.032 * 10/12)
P = 60 / 0.027
P = 2222.22
Therefore, you should invest $2222.22 at 3.2% interest in order to earn $60 in 10 months.
You have $2,500 on a credit card that charges 14% interest rate. If you want tot pay off the credit card in 3 years, how much will you need to pay each month
We can use the formula for the monthly payment on a fixed-term loan to determine how much you need to pay each month:
c = [r(1+r)^n / ((1+r)^n - 1)] x P
Where:
c = monthly payment
r = monthly interest rate (annual rate divided by 12)
n = total number of payments (3 years multiplied by 12 months per year, so 36 payments)
P = principal amount (the initial amount you owe)
First, we need to convert the annual interest rate to a monthly rate by dividing it by 12:
r = 14% / 12 = 0.0117
Substituting the values into the formula, we get:
c = [0.0117(1+0.0117)^36 / ((1+0.0117)^36 - 1)] x 2500
c ≈ $82.82
Therefore, you will need to pay approximately $82.82 each month to pay off the credit card in 3 years.
To find out how much you should invest at 3.2% interest in order to earn $60 in 10 months, we can use the formula for simple interest:
Interest = Principal * Rate * Time
In this case, the interest is $60, the rate is 3.2% (which is equivalent to 0.032), and the time is 10 months. We need to solve for the principal.
60 = Principal * 0.032 * 10
To find the principal, we can rearrange the formula:
Principal = 60 / (0.032 * 10)
Principal = 60 / 0.32
Principal = 187.5
Therefore, you should invest $187.50 at a 3.2% interest rate in order to earn $60 in 10 months.