Question

Please show work!

Answer 1

Okay. So the formula for the amount of time is I / Pr, meaning you multiply the principal and the rate in decimal form together, and you divide the amount of interest by that number. The formula for finding the interest rate is I / Pt, meaning you multiply the principal and time, and the you divide the amount of interest by that number. With a decimal, be sure to multiply by 100 to get the whole percentage. With that being said, if you solve this correctly, here are your answers.

Principal: $6,631
Interest Rate: 8.05%
Time: 33 months
Simple Interest: $1,467.94

Principal: $884,706
Interest Rate: 5.42%
Time: 40 months
Simple Interest: $159,931

Note: For times in months, you'll have to do some conversion into decimals, but you know that 12 months equal 1 year, so you can divide the time period by 12. For the second part, I happened to get 5.43% when I worked it out, but a calculator happened to round off to 5.42%, so it's a bit confusing, but those are the answers.