Question

Find the time. Round to the nearest month given the following: Principal: $3,500Rate: 8.25%Simple Interest: $143.50

Answer 1

Solution

- The question tells us to find the time in months given that the Principal is $3,500, the Rate is 8.25%, and the Simple Interest is $143.50.

- In order to solve this question, we simply need to apply the Simple interest formula given below:

$\begin{gathered} I=P\times R\times\frac{T}{12} \\ \\ \text{where,} \\ P=\text{ Principal} \\ R=\text{ Rate} \\ T=\text{ Time in months} \end{gathered}$

- We have all the parameters but the Time, thus, we can proceed to calculate the value of T as follows:

$\begin{gathered} P=3500 \\ R=8.25\text{ \%}=\frac{8.25}{100} \\ \\ I=143.50 \\ \\ 143.50=3500\times\frac{8.25}{100}\times\frac{T}{12} \\ \\ \text{Make T the subject of the formula:} \\ T=143.50\times\frac{100\times12}{3500\times8.25} \\ \\ T=5.964\text{ months}\approx6\text{months} \end{gathered}$

Final Answer

The time in months is 6 months