Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

The simple interest formula is A = P(1 + r)t where P represents the amount originally deposited, r is the interest rate, and A is the amount in the account after t years.

Find r if A = 2700, P = 2200 and t = 5.
2700 = 2200(1 + r)5
Express r as a percentage to one decimal place (x.x%).

Sagot :

To find this, you just need to plug it in and use some algebra to figure it out.
Initial:                                 2700 = 2200(1 + r)5
multiply 2200 and 5:             2700 = 11000(1 + r)
Divide both sides by 11000:     .24 = 1 + r
subtract both sides by 1:        -.754 = r

The problem is, a negative interest rate makes no sense if there was actually an increase of 500. We can try distributing the 11000 instead
Where we left off:                              2700 = 11000(1 + r)
Distribute the 11000:                         2700 = 11000 + 11000r
Subtract 11000 from both sides:        -8300 = 11000r
Divide both sides by 11000:                -.754 = r

As you can see, both methods reached the same impossible answer. I'm assuming that you didn't type out the equation right. Are you sure it wasn't 
2700 = 2200(1 - r)5
? If you subtract the r to make it negative, it might make more sense. But that still leaves us with a .754 rate of interest, which seems too high. Double check where you're typing from
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.