(A) If $200 is borrowed and the interest after 24 months is $60, what is the annual interest rate for a simple interest loan? (B) Charlie wants to buy a $100 TV in 3 months. How much should he invest now at 12% simple interest to have the money in 3 months?

dredyue

dredyue

Answered question

2022-08-05

(A) If $200 is borrowed and the interest after 24 months is $60, what is the annual interest rate for a simple interest loan?
(B) Charlie wants to buy a $100 TV in 3 months. How much should he invest now at 12% simple interest to have the money in 3 months?

Answer & Explanation

Kaitlynn Church

Kaitlynn Church

Beginner2022-08-06Added 19 answers

A) SI = p*n*r / 100
60 = 200*(24/12)*r / 100
r = 15%
B) A = p( 1 + n*r/100 )
100 = p( 1 + (3/12)*12 / 100 )
p = 97.09$

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