Question

practice finding simple interest
study the example showing how to use the simple interest formula, then solve problems 1-6.
example
pablo deposits $750 into a bank account. the account earns yearly simple interest at a rate of 3\frac{1}{2}\\. how many years will it take pablo to earn a total of $105 in simple interest?
use the simple interest formula and solve for t.
p = $750, r = 3.5\\%, and i = $105
i = prt
105 = (750)(3.5\\%)(t)
105 = (750)(0.035)(t)
105 = 26.25t
4 = t
it will take 4 years for pablo to earn $105 in interest.
1 suppose you deposit $1,200 into a bank account. the account earns yearly simple interest at a rate of 1\frac{3}{4}\\. how many years will it take to earn a total of $126 in simple interest? show your work.
solution
2 conan borrows $3,000 at a yearly simple interest rate of 1.6\\% for 2 years. he owes \\_\\_\\_\\_\\_\\_\\_ in interest. he needs to pay back \\_\\_\\_\\_\\_\\_\\_ in all.
vocab
simple
a percen
amount
borrower

Explanation:

Problem 1

Step1: Identify values

\( P = 1200 \), \( r = 1\frac{3}{4}\% = 1.75\% = 0.0175 \), \( I = 126 \)

Step2: Use simple interest formula \( I = Prt \)

\( 126 = 1200 \times 0.0175 \times t \)

Step3: Calculate \( 1200 \times 0.0175 \)

\( 1200 \times 0.0175 = 21 \)

Step4: Solve for \( t \)

\( 126 = 21t \) → \( t = \frac{126}{21} = 6 \)

Step1: Identify values for interest

\( P = 3000 \), \( r = 1.6\% = 0.016 \), \( t = 2 \)

Step2: Use \( I = Prt \)

\( I = 3000 \times 0.016 \times 2 \)

Step3: Calculate interest

\( 3000 \times 0.016 = 48 \); \( 48 \times 2 = 96 \)

Step4: Calculate total payback

Total = \( P + I = 3000 + 96 = 3096 \)

Answer:

6 years

Problem 2