Question

My name is John. I have never been here before.
I am having trouble understanding a sample problem provided in my text. It explains calculating the Rate in a simple interest problem.

Answer 1

I attached an image of my issue

Answer 2

my first issue is... isn't the formula upside down?
my second issue is... where are the decimal places coming from?

Answer 3

I thought it was Interest over Principal X Time
And I thought 1750 X 5 was 8,750

Answer 4

ok, first of all, you should understand how the simple interest formula works.

it goes like this: I=P*R*T
when I is the interest you get after you inverst amount P at a rate R (rate can be found by dividing the percentage by 100) for time T in years. so..

Answer 5

you can rearange the formula, to find rate like this:

I=P*R*T
R=I/(PT)

Answer 6

because you divide both sides of I=PRT by PT

Answer 7

get it?

Answer 8

I get it but it reads R=(PT)/I

Answer 9

or am i just not inturpriting it right?

Answer 10

the formula is wrong in your example
it should by R=I/(PT)

Answer 11

and what about the 1750 X 5 = 87.50?

Answer 12

the rest is correct, it is just that the formula is wrong, but the final answer is correct

Answer 13

i realize the final answer was correct by using an online calculator :) AND I think they worked it out using the correct formula. I just don't understand some if there math

Answer 14

I don't understand how 1750 * 2 1/2 = 87.5

Answer 15

oops, i ment 3500 * 2 1/2 = 87.5

Answer 16

well, the way these guys wrote it in that paper is completely nonsensical, so just delete it because the method of solving there is wrong and confusing

Answer 17

you should get some trustworthy questions, not stuff like that

Answer 18

simple interest is calculated at:

I = Prt

Answer 19

Ok, thats what I needed to here :) This was provided to me by an online government career development program. Where is your "Thumbs up" button?

Answer 20

amistre, I already covered that abouve

Answer 21

...but..but... it so far up there......

Answer 22

it is near my name

Answer 23

=D LOL

Answer 24

by chance do you have a short explanation why this formula assumes 360 days in a year instead of 365?

Answer 25

it does not

Answer 26

accountants cant count? :)

Answer 27

i used the word formula for lack of better term
maybe i should have said concept

Answer 28

it might have something to do with the Jewish culture, they started alot of this interest bearing stuff and they had 360 day years...

Answer 29

but the simple interest formula assumes 365, I am certain

Answer 30

they have provided me with more nonsense I assume :)

Answer 31

sure they have, that example you showed was enough to prove that those guys are MORONS, who ever they are

Answer 32

they translated 36 days as 36/360 for this formula

Answer 33

if you are interested in learning maths fast, and in a fun way, I know a great site

Answer 34

im interested in relearning math. I quit when I got to calculus years ago because I had poor trig skills

Answer 35

http://www.khanacademy.org
this is the site.
IT IS 100% free, I LOVE IT. It covers everything from calculus to percentages to biology

Answer 36

WATCH the intro vid

Answer 37

you will get an idea how to use it

Answer 38

http://www.khanacademy.org/#browse

Answer 39

here is the list of topics, when you click on topics, you are directed to videos

Answer 40

and above, the is a button practics, if you click on it you will be given some questions

Answer 41

I love that its free.
I paid $600 for this nonsense schooling :P

Answer 42

well, just watch the intro video at the homepage of http://www.khanacademy.org/#browse

Answer 43

Simple interest normally uses a 360-day year for simplicity, i.e., 30 day months. Interest calculated this way earns a little more than if using a 365-day year. Here is an example for a 90 day loan ... from google

Answer 44

yea, but it depends on a problem and scenario, believe me, my text book uses 365

Answer 45

I read banks use 360 and the federal reserve uses 365

Answer 46

http://www.khanacademy.org/
this video intro is like 20 min, but it is cool, you will understand how the site works, it also has bill gate at the end :)

Answer 47

So, again, where are these thumbs up fan buttons?

Answer 48

just click"become a fan" next to the screen name its in blue

Answer 49

it is the blue "Become a fan" button

Answer 50

do you see it?

Answer 51

Im gussing my adblocker is hiding it

Answer 52

thats because you only have one post/question created, if you ask another question, the fan system should be unlocked for you

Answer 53

but it is not a big deal anyways =D just a game :)

Answer 54

is it inline on this page, or supposed to be in the info that appears on hover?

Answer 55

Oh ok, odd
says im a lifesaver?

Answer 56

inline, and on the info, but as i have said, you have to have atleast a few questions.
You are a lifesaver because I faned you :)

Answer 57

today, yours should say sanity saver

Answer 58

well, just use the http://www.khanacademy.org site to learn stuff, using those videos I learned calculus derivatives like in 2 hours

Answer 59

it is simply cool, MILLIONS use it, just watch the intro vid, and you will be hooked

Answer 60

all i remember about calculus is that they asked to find the rate of change between point A and point A, and when it wasn't 0 I was throughly confused :)

Answer 61

I will defiantly check that site out, and will likely return here with questions. I will do my best to fan you when i'm allowed to. Thanks for your time and patience! See ya soon

Answer 62

http://www.khanacademy.org/#Calculus