Equation: r = (1/t)(A/P - 1) Calculation: Solving our equation r = (1/2)((20475/17500) - 1) = 0.085 r = 0.085 converting r decimal to a percentage R = 0.085 * 100 = 8.5%/year
The interest rate required to get a total amount, principal plus interest, of $ 20,475.00 from simple interest on a principal of $ 17,500.00 over 2 years is 8.5% per year.
You find the inverse by replacing the x with the y, and solving for y. Doing this actually gives you -5x+3 but in this case, the closest answer would be 5x-3.
