I need help...

Question

How do I find the variable "P" if the interest rate is 6% the time is 3 years and the simple interest is $2952?

Answer 1

hi ben

 

my answer is P=16,400

 

I took the simple interest- 2952 and divided it by 3 years= 984- so you are getting 984.00 interest per year

 

then take the 984 you get each year and divide it by your interest rate =0.06 and you get 16,400

 

to check yourself-- take 16,400 and multiply it by 0.06 and you get 984 (the interest you get each year) and multiply it by 3 years and you get 2952--total interest

 

You can also do it this way: take the total interest 2952 and divide it by the interest rate 0.06 and you get 49,200, then divide that by 3 years and you get 16,400= principal

Answer 2

Find the variable "P" if the interest rate is 6%, the time is 3 years, and the simple interest is $2952.

 

simple interest earned = P I T

 

$2,952 = (P dollars)*(6% / year)*(3 years)

 

$2,952 = (P dollars)*(18%)

 

18% = 18 per centum (Latin for hundred) = 18/100 = 0.18

 

P = $2,952/0.18 = $16,400

Answer 3

So that you can remember how to do this for any problem, recall that I = PRT.

 

To solve for the other ones there's a pattern:

 

P = I / (RT)

R = I / (PT)

T = I / (PR)

 

Notice that each one is the I divided by the other two numbers.  Make sure you do the denominator first.

 

So for this:

P = 2952 / (.06*3)

P = 2952 / .18

P = 16,400

 

What you're actually doing is working that original equation backwards.  If you multiply to get there, you divide to go backwards.