Answer:
a) Interest = $980
b) Principal = $7250
c) Interest rate = 3%
Step-by-step explanation:
a) For Alex
How much interest (in dollars) will Alex receive after 2 years if he deposited $14,000 in the bank at 3.5% annual interest rate?
The formula for Simple Interest = PRT
Where
P = Principal = $14,000
R = Interest rate = 3.5% = 0.035
T = Time = 2 years
I = $14,000 × 0.035 × 2
I = $980
b) For Davit
Davit received $870 as an interest for money invested in Foreign Exchange Market three years ago. How much money did he invest, if the annual interest was 4%
The formula for Simple Interest = PRT
Where
P = Principal = ?
R = Interest rate = 4% = 0.04
I = $870
T = 3 years
years
Solving for P
P = I/RT
P = $870/0.04 × 3
P = $870/0.12
P = $7250
c) For Arthur
. For starting a new business, Arthur borrowed $23000 and calculated $3450 interest for five years. What annual interest was considered?
The formula for Simple Interest = PRT
Where
P = Principal = $23,000
R = Interest rate = ?
I = $3450
T = 5 years
years
We are Solving for R
R = I/PT
R = $3450/$23,000× 5
R = 3450/115000
R = 0.03
Converting to percentage
= 0.03 × 100
= 3%
