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Given the formula of sample interest where I is the interest in dollars P is the principal in dollars are is the interest rate as a decimal and te is the time period in years

Given the formula of sample interest where I is the interest in dollars P is the principal in dollars are is the interest rate as a decimal and te is the time p class=

Respuesta :

Interest: Subtract the principal from the maturity value:

[tex]I=9,270-9,000=270[/tex]

I= $270

Principal: Value of the loan

P=$9,000

time: Turn the 3-months into years:

[tex]3\text{months}\cdot\frac{1\text{year}}{12\text{months}}=0.25\text{years}[/tex]

t=0.25 years

Having the data for P, I and t, use the formula (I=Prt) to solve r:

[tex]\begin{gathered} I=P\cdot r\cdot t \\ r=\frac{I}{P\cdot t} \\ \\ r=\frac{270}{9,000\cdot0.25}=\frac{270}{2,250}=0.12 \end{gathered}[/tex]

Interest rate: r=0.12

Multiply the interest rate by 100 to write it as a percent:

[tex]0.12\cdot100=12[/tex]

Annual simple interest rate: 12%