Question

The principal P is borrowed & the loans future value, A, at time is given. Determine the loans simple interest rate, r, to the nearest tenth as percent. - P=$160 A=$188.80 T=3 years

Answer 1

I don't quite understand the meaning of "A" when it comes to this problem. I'm assuming that "A" is the amount of interest paid within 3 years? But that's how I solved it. Because the equation is  (I) over PT=

I = interest paid monthly/annually or whatever the determined number is.

P = principle (the money that was started out)

T = the time of the accruement

R= the interest rate.

That's why I'm assuming that A is going to equal I in this problem.

So it will be

188.80 over (/) 160 x 3= R

We will multiply 160 x 3 = 480

Then, we'll divide 188.80 by 480

188.80 ÷ 480 = 0.393.

We'll multiply that number by 100.

0.393 x 100 = 39.3%.

That's a HUGE interest rate, so that's why I'm not sure if A if the correct answer.