Question

ok question. this one is tricky. my dad and i cant quite figure this out too. please help. i will give medals
Maneesh paid $63 in interest to borrow $3600 for 6 months.
What annual interest rate did Maneesh pay?
A.3.5%
B.1.75%
C.0.035%
D.0.0175%

Answer 1

please help

Answer 2

Simple interest, or compound?

Answer 3

Do you understand my question? Do you know the difference between simple interest and compound interest?

Answer 4

It appears from working the problem that they are talking about simple interest here, not compound.

Answer 5

Why do you keep asking other people for help when there is someone already helping you?

Answer 6

nvm tht it is simple intrest

Answer 7

Are you interested in my help, or not?

Answer 8

Whpalmer is better at explaining than I am :P

Answer 9

what do u think. of course i am it is just i just burnt myself really bad and i m not in the best mood. @whpalmer4 continue

Answer 10

oh and i burnt myself on the dishwasher coils

Answer 11

Okay, the formula for computing simple interest is
\[I = Prt\] where \(I\) is the total interest paid, \(P\) is the principal balance, \(r\) is the interest rate, expressed as a decimal, and \(t\) is the number of years

Answer 12

Sorry to hear about the burn!

No, @shadow22, that's not correct.

Answer 13

so multiply the three?

Answer 14

Here we have \(I = 63\), \(P=3600\). One tricky bit: what do we use for \(t\)?

Answer 15

6*2= t

Answer 16

6 months

Answer 17

T is in years

Answer 18

oh ya..... so it would be 0.5?

Answer 19

0.5=t?

Answer 20

yes, \(t=0.5\) is the correct value to use, because 6 months is 0.5 years

Answer 21

ok

Answer 22

now, can you rearrange our equation to give \(r\) in terms of the other three quantities?

Answer 23

yes... OS is lagging so much don't let me type

Answer 24

\[I =63 and P=3600 and T=0.5sowhatdoesRmean\]

Answer 25

and what do i do next

Answer 26

Can you solve \[I = Prt\] for \(r\) on one side and everything else on the other?

Answer 27

r=rate

Answer 28

what do you meanr on one side and everything else on the other?

Answer 29

mean r*

Answer 30

interest rate

Answer 31

on one side of the = sign

Answer 32

Interest: $126 for 1 year.
Rate: x% of 3,600 = 126
x = 126/3,600 = 0.035 -> the rate is 3.5%

Answer 33

\[I = Prt\]\[\frac{I}{P} = rt\]\[\frac{I}{Pt} = r\]

Answer 34

i dont get what you mean whpalmer

Answer 35

all three of those formulas are equivalent. In the second one, I divided both sides by \(P\). In the third one, I divided both sides by \(P\) and also by \(t\). The third one is the one I was hoping you could find for me.

If you plug in the numbers in the third equation, you'll get your answer, though remember that the value of \(r\) you get is a decimal, NOT a percentage. You'll have to multiply it by 100% to get a percentage.

Answer 36

i dont get what you mean by "sides"

Answer 37

:/

Answer 38

sides of the equation. In the initial equation, you have \[I = Prt\]so \(I\) is on the left side and \(Prt\) is on the right side

However, to find the value of \(r\), we need \(r\) alone on one side of the = sign, and everything else on the other side.

\[I = Prt\]divide both sides by \(P\)
\[\frac{I}{P} = \frac{Prt}{P}\]\[\frac{I}{P} = \frac{\cancel{P}rt}{\cancel{P}} = rt\]
Any question about that?

Answer 39

ya i still am confused. i am in a sort of young grade (6) so i dont really understad that equation you made for an example

Answer 40

sort of. i only understand a little bit of it

Answer 41

The answer is c hun

Answer 42

i still want to learn how to do it and whpalmer is helping me alot

Answer 43

Oh Ok
Thats Good

Answer 44

continue palmer

Answer 45

Well, let's try it without rearranging the formula.

\[I = Prt\]We know \(I=63, \,P=3600,\,t=0.5\)

That means we have
\[63 = 3600*r*0.5\]We can simplify that to \[63 = 1800*r\]

If I tell you that 1800 * some number gives you 63, how would you find out what that number is?

Answer 46

i would divide 1800 by 63

Answer 47

would i be correct @whpalmer4 ?

Answer 48

umm....... did everyone just turn dead? or am i lagging

Answer 49

i have 5 more minutes left

Answer 50

would i be correct if i said c?

Answer 51

i am just going with it. good bye

Answer 52

Oh Sorry Hun Yes Its c

Answer 53

sorry, OpenStudy not being cooperative

63/1800 is the calculation you would make to find the number which when multiplied by 1800 gives you 63.

63/1800 = 0.035

0.035 * 100% = 3.5%

To check the answer, 3.5% annual interest means for every $100 borrowed for 1 year, you pay $3.50 in interest. If you only borrow it for half that time (6 months), then you pay half that amount of interest, or $1.75.

You borrowed $3600, which can be thought of as borrowing $100 36 times. For each $100, you pay $1.75 for half a year's interest. $1.75 * 36 = $63, which is the total amount the guy paid in interest, so 3.5% is the correct interest rate.

Answer 54

Yes, you would divide both sides by 1800,

\(\ \dfrac{63}{1800} = \dfrac{\cancel{1800}}{\cancel{1800}} \)

Answer 55

My latex is so laggy :/

Answer 56

C is NOT correct

If C was the correct answer, the amount of interest paid for borrowing $3600 for half a year would be only $0.63, not $63.

Answer 57

@Michelle♥ forget to convert it back by multiplying by 100 >.>

Answer 58

Thus illustrating a danger of accepting answers from people who don't show their work!

Answer 59

Anyhow, if you understand a bit of algebra, you would rearrange the formula I gave:

\[I = Prt\]by dividing both sides by \(Pt\) to give\[\frac{I}{Pt} = r\]Plugging in the known values
\[\frac{\$63}{(\$3600)(0.5)} = 0.035\]Again, this is a decimal rate, not a percentage, so we multiply by \(100\%\) to get \(3.5\%\) as the annual interest rate for the loan.