Answer:
$165
Step-by-step explanation:
In 1 years, you will have $165.00 of simple interest.
Calculations: The Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.
The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:
A = P + I = P + (Prt), and finally A = P(1 + rt)
Calculate Total Amount Accrued (Principal + Interest), solve for A
A = P(1 + rt)
Calculate Principal Amount, solve for P
P = A / (1 + rt)
Calculate rate of interest in decimal, solve for r
r = (1/t)(A/P - 1)
Calculate rate of interest in percent
R = r * 100
Calculate time, solve for t
t = (1/r)(A/P - 1)
