Question

use the simple interest formula to determine the missing value. p =?, r = 8%, t = 9 months, i = $72 p = $\square (round to the nearest cent as needed.)

Explanation:

Step1: Recall simple interest formula

The simple interest formula is $i = p \times r \times t$, where $i$ is interest, $p$ is principal, $r$ is annual interest rate, $t$ is time in years.

Step2: Convert time to years

Since $t$ is given in months, convert to years: $t = \frac{9}{12} = 0.75$

Step3: Rearrange formula for $p$

Isolate $p$: $p = \frac{i}{r \times t}$

Step4: Substitute values and calculate

First convert $r = 8\%$ to decimal: $r = 0.08$. Substitute $i=72$, $r=0.08$, $t=0.75$:
$p = \frac{72}{0.08 \times 0.75} = \frac{72}{0.06} = 1200$

Answer:

$\$1200.00$