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? What is the future value?

  1. 👍 0
  2. 👎 0
  3. 👁 61
asked by Barry
  1. Interest for the first year is the principal, P=$900 multiplied by the rate of interest, r=0.045, multiplied by the number of periods, n=1.
    So interest
    I=$900*0.045*1=$40.5

    The future value is the sum of the interest and the principal.

    Note that in this case (n=1), the interest is the same whether it is simple or compound. In general, the question should specify whether it is simple interest or compound interest. In the latter case, the compounding period should also be specified (yearly, quarterly, monthly, etc.)

    1. 👍 0
    2. 👎 0
    posted by MathMate

Respond to this Question

First Name

Your Response

Similar Questions

  1. 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)

    asked by Sydney HELP! Need help ASAP! on April 9, 2015
  2. Math

    If the principal P = $900, the interest I = $819, and time t = 7 years, what is the rate?

    asked by LaCresha on July 28, 2012
  3. Economics

    How do I figure out the principal in the equation principal X rate X time? I am borrowing $255,920.00 which is the total amount of the home ($319,900.00) minus $63,980.00 (20%I put down). I am trying to figure out what my monthly

    asked by Gabby on March 15, 2013
  4. Math

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

    asked by Monica on January 29, 2012
  5. 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? $ (b) What is the future value?

    asked by Urgen please help on June 12, 2012
  6. 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? What is the future value?

    asked by Julie on April 23, 2012
  7. 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? What is the future value?

    asked by MONICA on November 21, 2011
  8. Math

    Find the simple interest. Round your answer to the nearest cent. Principal = $900 Rate = 4% Time in years = 3

    asked by George on May 29, 2010
  9. Math

    Find the simple interest. Round your answer to the nearest cent. Principal = $900 Rate = 4% Time in years = 3 Is this correct: 900*0.04=36 36*3=108.00 Then my next question is when you round to the nearest unit is it the same as

    asked by Becky on May 29, 2010
  10. math

    Does anyone know how to find the rate with ONLY principal and time? (no interest) Refer to this: Investment A: Rate as 'R,' principal as $8000, time as '4 years,' and interest as 'SI'

    asked by Anonymous on November 17, 2017

More Similar Questions