I=prt

weehoo74

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Sep 25, 2012
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Hello, I just learned about this subject, (I=PRT) I know interest equals (principal)(rate)(time). Yet there are some questions/subjects that confuses me, for example:"After eight months, the simple interest earned annually on an investment of $4500 is $165. What is the interest rate?". These kind of questions that confuses me, I do not know which way to find the answer.:confused:
 
Hello, I just learned about this subject, (I=PRT) I know interest equals (principal)(rate)(time). Yet there are some questions/subjects that confuses me, for example:"After eight months, the simple interest earned annually on an investment of $4500 is $165. What is the interest rate?". These kind of questions that confuses me, I do not know which way to find the answer.:confused:
You are given a formula that relates four things. You can rearrange the formula algebraically so that what you want to know is all by itself on the left side of the equation and equated to an expression using the other three variables. In other words, given any three variables, you can find the fourth by simple algebraic re-arrangement.

In short, rework the formula to read I = what?. Now do the indicated calculation and find I.
 
Symbol t stands for the number of years. How many years is 8 months?

Consider these examples:


If interest earned for 5 months is $103.13, what is the rate?

5 months = 5/12ths of a year

Solve: 103.13 = (4500)(r)(5/12)


If interest earned for 1 month is 20.63, what is the rate?

1 month = 1/12th of a year

Solve: 20.63 = (4500)(r)(1/12)
 
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