How to solve this problem
1 answer:
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Answer:
He should pay $2,790.7.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time, in years.
After t years, the total amount of money is:
In this question:
Rate of 10%, so I = 0.1.
9 months, so
How much should he pay for a note that will be worth $3,000 in 9 months?
We have to find P for which T = 3000. So
Then
He should pay $2,790.7.