Determine the missing value by using simple interest
P= R= 2% T=90days i=$12.50
I = PRT
P = I/RT
P = 12.5/(0.02 * 0.25)
P = ?
P= 156.25
No. Calculate the numbers within the parentheses first.
P = 12.5/ 0.005
P = $2,500
To determine the missing value using simple interest, we need to know the formulas involved.
The formula to calculate simple interest is:
I = P * R * T
Where:
I = Interest
P = Principal (the initial amount)
R = Rate
T = Time (in years)
In this case, we are given:
R = 2% (0.02 as a decimal)
T = 90 days (which needs to be converted into years)
To convert days into years, we need to divide by 365 (assuming it is not a leap year):
T (in years) = 90 days / 365 days
Now let's calculate T in years:
T (in years) = 90 / 365
T (in years) ≈ 0.2466
Now we can plug in the values into the simple interest formula to find the missing value (P or I):
I = P * R * T
We are given that I = $12.50, so we have:
$12.50 = P * 0.02 * 0.2466
To find P, we need to rearrange the formula:
P = I / (R * T)
Now let's substitute the given values:
P = $12.50 / (0.02 * 0.2466)
P ≈ $101.21
Therefore, the missing value (P) is approximately $101.21.