Hey i need this answer real quick like 1 minute quick not for teat or anything
2 answers:
You might be interested in
Answer:
Principal: $1,905.63
Step-by-step explanation:
<h2>Definitions:</h2>- Simple interest is commonly used for short-term loans.
- Principal: the total amount borrowed from a lender, or deposited into a savings account.
- Interest: this is the fee that lenders charge for loaning funds, or the fee that banks pay the depositor (saver) for lending out a portion of the depositor's savings to other loaners.
- Interest rate: it is the percentage of the principal amount over a given period of time.
The formula for finding the simple interest is:
<em>A</em> = <em>P </em>(1 + <em>r </em>× <em>t </em>)
Where:
<em>A</em> = amount (future value) = $2,100
<em>P</em> = present value of the principal = unknown
<em>r</em> = annual simple interest rate = 3.4% or 0.034
<em>t</em> = time = 3 years
<h2>Solution:</h2>Substitute the given values into the Simple interest formula:
<em> ⇒ A</em> = <em>P </em>(1 + <em>r </em>× <em>t </em>)
$2,100 = <em>P </em>(1 + [0.034 × 3]<em> </em>)
$2,100 = <em>P </em>(1 + [0.102]<em> </em>)
$2,100 = <em>P </em>(1 .102)
Divide both sides by 1.102 to isolate "P":
P = $1,905.63
Therefore, the principal amount of investment required to reach a future value amount of $2,100 at an annual interest rate of 3.4% at the end of 3 years is $1,905.63.
_________________________________
<u>Additional Note:</u>
Alternatively, we can make the Principal (P) as the subject of the Simple Interest Formula:
<em>A</em> = <em>P </em>(1 + <em>r </em>× <em>t </em>)
Divide both sides by (1 + <em>r </em>× <em>t </em>):
<u><em>Keywords:</em></u>
Simple interest
Principal
Interest rate
Present value
Future value
_________________________________
Learn more about simple interest here: