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viktelen [127]
3 years ago
7

How to compare rates and ratios

Mathematics
1 answer:
Leviafan [203]3 years ago
6 0
Ratios don't have to be "per" something, while rates are "per" something. 

Ratios compare 2 or more values, as well as rates. 
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$800 is invested at a rate of 7%. What will be the total amount of the investment after 3 1/2 years?
torisob [31]

Answer:

A = $996.00

Step-by-step explanation:

(I = A - P = $196.00)

Equation:

A = P(1 + rt)

Where:

A = Total Accrued Amount (principal + interest)

P = Principal Amount

I = Interest Amount

r = Rate of Interest per year in decimal; r = R/100

R = Rate of Interest per year as a percent; R = r * 100

t = Time Period involved in months or years

From the base formula, A = P(1 + rt) derived from A = P + I and I = Prt so A = P + I = P + Prt = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 7%/100 = 0.07 per year.

Solving our equation:

A = 800(1 + (0.07 × 3.5)) = 996

A = $996.00

The total amount accrued, principal plus interest, from simple interest on a principal of $800.00 at a rate of 7% per year for 3.5 years is $996.00.

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Answer:

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