Question

How many days would it take a construction loan of $548,048 to earn$50,000 exact interest at 9% interest rate

Answer 1

Do you recognize the term, principal amount?

Answer 2

yes

Answer 3

Do you know what it means?

Answer 4

the amount borrowed separate from interest

Answer 5

What would that be here?

Answer 6

548,048 because if the interest is 50,000 it couldnt be that and its not the 9% rate correct?

Answer 7

A loan is someone borrowing money

Answer 8

And $548,048 was taken as a construction loan, so :)

Answer 9

so you take the interest rate of 9% but what im not getting is how you find how many days it will take :/

Answer 10

Did your lesson or teacher every provide a formula for you?

Answer 11

Also please list any multiple choice answers, if any

Answer 12

370 days, 360 days, 365 days, and 364 days

Answer 13

Well, what we're trying to solve for, is t, or the amount of time it would take to obtain $50,000 in interest, from a construction loan of $548,048 at a 9% interest rate

Answer 14

So here is the formula I will be using

Interest Amount = (Principle Amount)(Interest Rate)t/365

Lets make that prettier

Let I = Interest Amount
Let P = Principal Amount
Let R = Interest Rate
Let t = time

\[I = (PRt)/365\]

Answer 15

Can you solve it now?

Answer 16

yes i think so, so the I=50,000 and the P=548,048 and the R= 9% and then we're trying to find time?

Answer 17

time basically = days

Answer 18

Only in this equation though, as I have that side of the equation being divided by 365 which converts it from a year, to days

Answer 19

oh, i see now so you plug in 365 for time?

Answer 20

No

Answer 21

im so confused do you leave it as blank and solve for it?

Answer 22

Yes leave t blank. We're solving for t

Answer 23

Like 3x = 15

"Solve for x"

Answer 24

and then t is the final answer?

Answer 25

Just looks a bit different :)

Answer 26

yes

Answer 27

Let me explain it all in one big post for you

Answer 28

okay thank you!!

Answer 29

Ok forget anything I've said before.

Problem: "How many days would it take a construction loan of $548,048 to earn$50,000 exact interest at 9% interest rate"

So what are we trying to find? The amount of days it will take an interest rate of 9% on $548,048 to make exactly $50,000.

So now we setup the equation, to solve for the amount of days it would take.

Let t = the amount of days it would take

We start with 50,000 as we know that at some point, t multiplied by the $548,048, multiplied by the interest rate, then multiplied t, all over 365, will get -> 50000

So 50,000 = (548,048)(0.09)t/365

Interest Amount = (Principle Amount)(Interest Rate)t/365

Answer 30

I spent a lot of time trying to figure out an easier formula for you, so that you could remember it for future use but it got con-jumbled o-o Just follow the above

Answer 31

Just setup this problem

So 50,000 = (548,048)(0.09)t/36

and solve for t using algebra

Answer 32

So 50,000 = (548,048)(0.09)t/365