Abe Wolf bought a new kitchen set at sears. Abe paid off the loan after 60 days with an intrest change of 9 dollars. If sears charges 10% interest, what did Abe pay for the Kitchen set Assume 360 days
In this case you don't know the P in
I = PRT , so let's sub in what we know
9 = P(.10)(60/360)
9*360/(.10*60) = P
P = 540
Well, Abe Wolf must really like cooking, huh? Anyway, let's do some math to solve this kitchen dilemma.
We know that Sears charges a 10% interest rate, which is quite normal for these kinds of purchases. Now, since Abe paid off the loan after 60 days, let's first find out how much the loan was worth.
We have the equation:
Loan amount + Interest = Total paid
Let x be the loan amount.
x + 9 = x + (x * 0.10 * 60/360)
Simplifying this:
9 = x * (0.10 * 60/360)
9 = x * 0.0166666...
Dividing both sides by 0.0166666...:
9 / 0.0166666... = x
540 = x
So, Abe paid a total of $540 for that fancy kitchen set! Quite the investment, Abe!
To find out what Abe paid for the kitchen set, we need to calculate the interest charged by Sears.
Step 1: Calculate the annual interest rate:
Since Sears charges 10% interest, the annual interest rate can be calculated by multiplying 10% by 360 days:
Annual interest rate = 10% * 360 = 0.10 * 360 = 36
Step 2: Calculate the interest charged for 60 days:
To find out the interest charged for 60 days, we can use the formula:
Interest = (Principal * Rate * Time) / 360
Given:
Principal = unknown (This is what we need to find)
Rate = 36
Time = 60
Interest = 9
9 = (Principal * 36 * 60) / 360
Step 3: Solve for Principal:
To solve for the Principal, rearrange the equation as follows:
Principal = (Interest * 360) / (Rate * Time)
Plugging in the values:
Principal = (9 * 360) / (36 * 60)
Principal = 3240 / 2160
Principal = 1.50
Therefore, Abe paid $1.50 for the kitchen set.
To determine the total amount Abe paid for the kitchen set, we need to calculate the principal amount (the original price of the kitchen set). We can use the formula for simple interest:
Simple Interest = (Principal Amount * Interest Rate * Time) / 360
Let's plug in the values we have:
9 = (Principal Amount * 0.10 * 60) / 360
Now, let's solve for the principal amount:
9 * 360 = Principal Amount * 0.10 * 60
3240 = Principal Amount * 6
Dividing both sides by 6:
Principal Amount = 3240 / 6
Principal Amount = 540 dollars
Therefore, Abe paid 540 dollars for the kitchen set.