Asked by lijm
Simple interest grew from the initial amount $1000 to $1075 in 9 months. Find the interest rate.
Like always, I will explain my thinking:
I know I have the find r (the interest rate). A=1075 P=1000 t=3/4 (9/12 becomes 3/4)
The formula is A= P(1+rt)
which is then rearranged as r=a-p/pt
r=1075-1000/p(3/4)
r=75/p(3/4)= 75*4/3p
300/3= 100
r=100
Like always, I will explain my thinking:
I know I have the find r (the interest rate). A=1075 P=1000 t=3/4 (9/12 becomes 3/4)
The formula is A= P(1+rt)
which is then rearranged as r=a-p/pt
r=1075-1000/p(3/4)
r=75/p(3/4)= 75*4/3p
300/3= 100
r=100