Question

What is the principal balance if the principal plus interest at the end of 1.5 years is $3,360 at an annual interest rate of 8%?

Answer 1

is this simple interest or compounded interest?

Answer 2

if it is compounded interest use this formula
\[Future Worth=Present Worth(1+i)^{n}\]
where i is the interest and n is the number of years
If it is simple interest
\[Future Worth=PresentWorth*i*n\]

Answer 3

for simple interest
\[Interest=PresentWorth*i*n\]
so
\[FutureWorth=PresentWorth+Interest\]
sorry please disregard my formula for simple interest in my first post

Answer 4

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