Question

Find the missing value. Round your answer to the nearest cent Principal: 5850, Rate: 9.72%, time 4 1/2 years. missing value are Amount and Interest

Answer 1

SOLUTION

Given the following parameters

$\text{ Principal=\ 5850,Rate=9.72\%, time = 4}\frac{\text{1}}{2}=\frac{9}{2}years$

The missing value are

$\text{Amount and Interest}$

Where

$\begin{gathered} \text{Interest,I}=\frac{\text{PRT}}{100} \\ \text{And } \\ \text{Amount A=P +I} \end{gathered}$

Obtain the interest, we have

$\begin{gathered} I=\frac{P\times R\times T}{100} \\ I=\frac{5850\times9.72\times\frac{9}{2}}{100}=\frac{5850\times9.72\times9}{2\times100}=\frac{511758}{100}=2558.79 \end{gathered}$

Therefore

The Interest I = 2558.79

The Amount will be obtain by using the formula

$\begin{gathered} \text{Amount, A=Principal +Interest} \\ A=5850+2558.79=8408.79 \end{gathered}$

Hence

The Amount, A is 8408.79