Question

3. Alice took out a simple interest loan to purchase carpet for her house. The interest on the loan

Answer 1

Answer:

The price of the carpet was $\ 3,697.20$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=P(rt)$

where

I is the Final Interest Value

P is the Price of the carpet

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=3\ years\\ P=\ ?\\ I=\ 1,081.43\\r=0.0975$

substitute in the formula above

$1,081.43=P(0.0975*3)$

$1,081.43=P(0.2925)$

Solve for P

$P=1,081.43/(0.2925)$

$P=\ 3,697.20$