Question

Calculate the simple interest earned when P=$15,000, r=6.8%, and t=80 days using the ordinary method. Round to the nearest cent.

Answer 1

Interest = P * r * t / 100
Where P is Principal = 15000
r = rate of interest = 6.8
t = time in years = 80/365

Interest = 15000 * 6.8 * 80/365 / 100 = ?

Answer 2

Yes I just figured this one out!!! I got 81,600. :)

Answer 3

ON my own I was so excited!

Answer 4

I do have more Im stumped on can you help me Im really needing the help!

Answer 5

This is one : Andre De Quadros bought a $4000, 9-month certificate of deposit (CD) that would earn 9% annual simple interest. What is the value of the CD when it matures?

Answer 6

How did you get 81,600?

Answer 7

I took 15,000(6.8)(80) rounded to the nearest cent and got 81,600. and its one of the answers too

Answer 8

what no thats not what I did but I just got the answer I have been doing this for hours now sorry I have scratch paper all over the place Im trying to find it

Answer 9

But that is not the right answer. You can't earn $81,600 in 86 days from a $15K investment!!!

Answer 10

OH crap....man I was so proud of myself for a second ok guess start me over sorry

Answer 11

its in 80 days right?

Answer 12

Okay 80 days. You need to convert 6.8% interest rate into decimal and so you have to divide by 100. Second, in the formula the t should be in years. Here it is in days. So divide it by 365.

Answer 13

When I did what you said up top I got 22.35 and none of those is my answers I am given..... ok so this is what I have done.... 1500 * .068 * 80/365 and I got 22.35...

Answer 14

Is $223.56 one of the answers?

Answer 15

OH YES it is duh!!!! right in front of me wow would of bit me

Answer 16

sorry thanks about that

Answer 17

you had 1500 when it should be 15000.

Answer 18

Is there anyone you can help me with the one I posted above...... Yeah I saw that now :) but I did understand thankfully LOL

Answer 19

Andre De Quadros bought a $4000, 9-month certificate of deposit (CD) that would earn 9% annual simple interest. What is the value of the CD when it m

Answer 20

matures sorry didnt finish the word for some reason

Answer 21

Similar calculation like the first problem except here they are not asking for interest but the amount at maturity. That means Principal + interest.

So calculate the interest just like before.

P = 40000
r = 9/100 = .09
t = 9 months = 9/12 years = 3/4 years

Interest = P*r*t = ?

Then add the interest to the principal P to get the maturity amount.

Answer 22

P = 4000 above not 40000

Answer 23

no t is??? im lost on that so I times it by 9 months then divide by 12 then again by 3 and ???? see lost there

Answer 24

No. T should be in years. They give it in months and so we divide by 12 to convert it to years. t = 9/12 years (I just simplified it to 3/4 years. they are all the same)

Answer 25

OH ok so I am dividing with a fraction then

Answer 26

Interest = 4000 * 0.09 * 9 / 12 = ?

Answer 27

ok give me just a sec k

Answer 28

ok so the slash it is a fraction or is that a divide sign cause Im still not getting the answer sorry im so frustrated

Answer 29

Fraction, divide sign they are all the same. Fraction is numerator divided by the denominator. Just multiply using your calculator 4000 x 0.09 x 9 first and then divide by 12.

Answer 30

i see how you got 3/4 though so its a fraction right....ok sorry give me a sec here

Answer 31

ok I got 270??? I did exactly what you said?

Answer 32

This will be the interest. You need to add the Principal $4000 to the interest to get the total amount.

Answer 33

OH ok 4,270

Answer 34

yes.

Answer 35

OH gosh your a lifesavor!!! can you help me anymore cause i have a few

Answer 36

I will do one or two more.

Answer 37

Susan bought a 6-month $1100 certificate of deposit. At the end of 6 months, she recieved $99 simple interest. find the annual rate of simple interest paid

Answer 38

Thanks for your help means alot...not taking any math classes online anymore so confusing

Answer 39

It is the same formula but they ask for a different thing.

Interest = P*r*t

Here, P = 1100 ; t = 6 months = 0.5 year ; Interest = $99. Find r. Just plug in the numbers into the formula:

99 = 1100 * r * 0.5

Solve for r

Answer 40

Ok so then I tak 1100 * 0.5 get 550 then do I divide by 99??

Answer 41

to find r??

Answer 42

yes 99/550 = r. But that will be in decimal and usually they want r in percentage. So multiply by 100.

Answer 43

5.5 *100 = 555 then ???

Answer 44

What is 99/550?

Answer 45

r is not 550/99. It is 99/550

Answer 46

We had 99 = 1100 * r * 0.5
99 = 550 * r
divide both sides by 550
99/550 = r

Answer 47

Hello?

Answer 48

sorry computer froze

Answer 49

sorry Im having to catch up

Answer 50

is 0.18

Answer 51

so its 18 percent??

Answer 52

are you there or did it freeze on your end Im so sorry the computers are acting up

Answer 53

or internet

Answer 54

Yes, 18%

Answer 55

Awesome :) your such a big help!!!! I dont want to bother you with more but I have some more will you be on tomorrow??? or later on ??? you always help me out

Answer 56

Just when I have some free time I stop by. No fixed schedule. I can just do one more here. Most of these are the same formula where you plug in the given numbers and solve for the unknown variable.

Answer 57

ok thanks

Answer 58

The price of an item in 2004 was $1.20. Use an inflation rate of 6% to calculate its price in 2030. Round to the nearest cent.

Answer 59

Have you been given a compound interest formula to use? I want to use the same symbols taught to you so I don't confuse you. Write down the formula from your book / notes / online material.

Answer 60

ok sounds good Im writing everything down that you are doing thats why I take a bit longer too...

Answer 61

so the same formula p x r x t

Answer 62

No. That is a SIMPLE interest formula. Here we need to use the COMPOUND interest formula. If you look through your notes and tell me the formula they used I will use the same. So I will wait for you to type in the formula.

Answer 63

and no never been given compount intrest formula...... ok let me look

Answer 64

ok so I se I=Prt A=P + I ????

Answer 65

still reading

Answer 66

That is the simple interest formula that we have been using all along. Now it is compound interest formula.

Answer 67

Yeah how they explain it has me all confused which as you can tell doesnt take much I dont see and exact formula alot of examples though not helping

Answer 68

It will look like this: \[\Large A = P(1 + \frac{ r }{ n })^{nt}\]

Answer 69

Ok I see ....I didnt see it on the book.... I cant stand this book its online makes no since

Answer 70

That is the formula.
A is the maturity amount
P is the Principal
r is the compounding interest in decimals
n is the compounding period
t is the number of years

Here P = 1.2
r = 6% = 0.06
n = 1 because inflation rate is compounded once a year.
t = (2030 - 2004) = 26 years
Plug it into the formula and calculate A.

Here you have to use exponents on your calculator.

Answer 71

A = 1.2(1 + 0.06)^26 (The ^ symbol means exponent)
A = 1.2(1.06)^26
A = ?

Answer 72

ok sorry writing it all down give me a sec :)

Answer 73

33.072 is what I got

Answer 74

I am getting $5.46. Is that one of the answers?

Answer 75

Yes but how?

Answer 76

what did I do wrong?

Answer 77

1.06 has to be raised to 26 first using your calculator. Then multiply the result by 1.2

Answer 78

OH I didnt do that!!!!!!! 1.06 what yes I did I did 1.06 * 26 then I got 27.56 then i * it by 1.2 was that wrong

Answer 79

26 is an exponent. So 1.06 raised to 26

Answer 80

so you dont times it? sorry I know prob dumb question but need to ask

Answer 81

No they are completely different.

10^4 means 10 * 10 * 10 * 10 = 10000
(10)(4) means 10 * 4 = 40

completely different results.

Answer 82

OH OK makes since now......

Answer 83

Wow your so good at math wish I could have your knowledge!!!! I appreciate your time as always I have like 5 more Im going to try to do on my own wish me luck LOL

Answer 84

And have another paper which makes no since to no one around here...I asked you the other day and no one was able to help on that one I think Im stuck on that lol

Answer 85

That was probably some simple concept but the terminology and the notation that they used was not something I have come across before. But if I had the class notes or text or online material I could quickly go over it and I should be able to answer those questions.

Answer 86

Well thank you so very much and when your on here I hate to bug you but you explain it where I understand so Im sorry If I bug you ..... I hope your on here tomorrow for that other paper is so so very hard! I think I can do this with what you have showed me tonight with this one though. Thank you so very much!!!

Answer 87

you are welcome.

Answer 88

Night :)