The couple received an annual rate of % that year on their investment. We can display the facts of the problem in a table. t = Investment 15,000 0.075 1 1,125 A father loaned his daughter $13,600 at a 4% annual simple interest rate for a down payment on a house. If the interest on the loan amounted to $2448, for how long was the loan? years

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Retirement income. One year after investing $15,000, a retired couple received a check for $1,125 in interest. Find the interest rate their money earned that year.
To find the interest rate, we will substitute the given values in the formula I = Prt
and solve for r.
The variable r represents the unknown interest rate.
The couple invested $15,000 (the principal P) for 1 year (the time t) and made $1,125 (the interest I). We need to find the annual interest rate, r.
I = Prt
This is the formula for simple interest.
1,125
15,000r(1)
Substitute 1,125 for I, 15,000 for P, and 1 for t.
1,125
Simplify the right side.
15,000r
To solve for r, undo the multiplication by 15,000 by dividing both sides by 15,000.
15,000
15,000
0.075 = r
Do the divisions.
%
= r
To write 0.075 as a percent, multiply 0.075 by 100 by moving the decimal point two places to the right and inserting a % symbol.
The couple received an annual rate of
% that year on their investment. We can display the facts of the problem in a table.
P
t
I
Investment
15,000
0.075
1
1,125
A father loaned his daughter $13,600 at a 4% annual simple interest rate for a down payment on a house. If the interest on the loan amounted to $2448, for how long was the
loan?
years
Transcribed Image Text:Retirement income. One year after investing $15,000, a retired couple received a check for $1,125 in interest. Find the interest rate their money earned that year. To find the interest rate, we will substitute the given values in the formula I = Prt and solve for r. The variable r represents the unknown interest rate. The couple invested $15,000 (the principal P) for 1 year (the time t) and made $1,125 (the interest I). We need to find the annual interest rate, r. I = Prt This is the formula for simple interest. 1,125 15,000r(1) Substitute 1,125 for I, 15,000 for P, and 1 for t. 1,125 Simplify the right side. 15,000r To solve for r, undo the multiplication by 15,000 by dividing both sides by 15,000. 15,000 15,000 0.075 = r Do the divisions. % = r To write 0.075 as a percent, multiply 0.075 by 100 by moving the decimal point two places to the right and inserting a % symbol. The couple received an annual rate of % that year on their investment. We can display the facts of the problem in a table. P t I Investment 15,000 0.075 1 1,125 A father loaned his daughter $13,600 at a 4% annual simple interest rate for a down payment on a house. If the interest on the loan amounted to $2448, for how long was the loan? years
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