Use the simple interest formula to determine the missing value. Round dollar amounts to the nearest cent and percents to the nearest hundredth when necessary
-p = $12,403, r = 3.5%, t = ?, i = $2170.53
A) t = 7 years
B) t = 5 years
C) t = 6 years
D) t = 4 years

Question

Quizplus · Accepted Answer

The simple interest formula is I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years. Rearranging the formula to solve for T gives T = I / (PR). Substituting the given values, T = $2170.53 / ($12,403 * 0.035) = 5 years.

Use the Simple Interest Formula to Determine the Missing Value