Is there a formula for this question? : determine how much money must be invested to produce $2120 simple interest over a period of 4 years at 7.65% p.a
thanks!
2007-07-28 22:01:52 · 5 answers · asked by little.clown 2 in Science & Mathematics ➔ Mathematics
simple interest
2007-07-28 22:23:23 · update #1
Yes,the formula for finding out the time is
P=I/R*T.where,
P=Principal
I=amount of interest
R=rate of interest p.a
T=Time in years
Here,
P=?
I=$ 2,120
R=7.65%=0.0765
T=4
Hence
P=2,120/0.0765*4
=$ 6,928.10
2007-07-28 22:20:52 · answer #1 · answered by moona 4 · 0⤊ 0⤋
Matrix got a little confused there. The equation is right but the 2120 was put in the wrong place.
2120 = 4*0.0765*MONEY
So MONEY = 6928.15 (to the nearest cent)
This is about 7k and at 7+% produces about 500 and some in interest each year or around 2000 for 4 years so I think this answer looks pretty good (interest is not compounded and all that I assume since you say simple interest)
2007-07-29 05:22:01 · answer #2 · answered by Captain Mephisto 7 · 0⤊ 0⤋
interest in one year=2120*7.65/100=162.18
interest in 4 year=4*162.18=648.72
2007-07-29 05:52:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋
interest= principal*rate*no. of years
so here
interst=$2120
no of years=4
and rate=7.65%
thus interest=2120*4*7.65=64872
2007-07-29 05:09:42 · answer #4 · answered by titu-the matrix 2 · 0⤊ 0⤋
Does the interest compound? If so,
x * (1.0765)^4 = 2120
x = 2120/(1.0765)^4 = $1578.63
Otherwise, it's just:
x * (1 + 4*.0765) = 2120
x = 2120/(1 + 4*.0765) = $1623.28
2007-07-29 05:13:57 · answer #5 · answered by pki15 4 · 0⤊ 0⤋