Question

Find the Balance after 4 years.
I=$426, P=$1200, t=5 years

Answer 1

So,

The I given is for 5 years.  We want I for 4 years.

I = PRt, assuming simple interest.

Substitute:

$426 = $1200(R)(5 years)

Solve for R.

$\frac{426}{1200*5}=R=0.071$

Now, substitute back into the formula with t = 4 years.

I = $1200(0.071)(4) = $340.8

The balance after four years is $340.8.