Question

Saccoro invested $3800 for 3 1/2 years. She earned $983.25 in simple interest. What was the annual interest rate, to the nearest hundredth of a percent ?

A. 0.74%
B. 5.35%
C. 7.39%
D. 13.53%

Answer 1

I know that the formula for this would be I = P R T . But I forgot what numbers go where

Answer 2

Do you have the simple interest formula on hand?

Answer 3

I is your interest. P is your principal (the amount you start out with). R is your rate (rate at which you gather interest, which is in decimal form), and T is for time.

Answer 4

Yea that I know .. But wat I need help with is how do I put the numbers in ?

Answer 5

Just convert the percentages into decimal form and plug each choice into the equation. A good hint is that the interest rate has to be relatively large for Saccoro to earn that much interest.

Answer 6

I was thinking bout doing that but I have to show my work so I rather do it the formula way

Answer 7

Okay. 3800 is the principal (P), since that's what she started with. The rate is what you're trying to find out. The time (t) is 3 and a half years. I is the 988.

Answer 8

Wait did u switch 983.25 into 988

Answer 9

Once you have those numbers in the equation, then it's valid work to simply plug in the answer choices for R.

Answer 10

Oops, I meant 983.25 xD

Answer 11

I hope that all made sense.

Answer 12

Oh okay and one more thing for time would I put 3 years or 3.5 years

Answer 13

And yea that made perfect sense

Answer 14

3.5 years :)

Answer 15

Okay thanks so much

Answer 16

Np.:)

Answer 17

Would the answer be C. 7.39% ?

Answer 18

I did this ..
983.25 = (3800) (r) (3.5)
983.25 = 13,300r
983.25 / 13,300 = 0.073928
r = 7.39 %

Answer 19

That looks right to me :)

Answer 20

Okay thanks

Answer 21

Np!