How do I solve for compound and simple interest? I need to answer questions (with work shown) such as P = $5,000 t=2years and R=6% what do I do?!

Question

Corbin Reid

Mathematics

5 November, 01:13

How do I solve for compound and simple interest? I need to answer questions (with work shown) such as P = $5,000 t=2years and R=6% what do I do?!

+2

Answers (2)

Know the Answer?

Houston Walsh · Answer 1

Use this formula: Interest = Principal * Rate * Time

5000 * 2 = 10,000

10,000 *.06 = 600

Interest = 600

Alia Peterson · Answer 2

Hello; ) Use I = P· r · t I = $5000·.06 (change to decimal by moving the decimal place twice) · 2 0.06·2 = 0.12 0.12· 5000 = 600 in interest. To find compond, use the formula P = (1+r) ^t (exponent) and just plug in the numbers. I'll give you this example: P (1+r) t 1950 (1+0.05) ^4 1950· (1.05) ^4 1950· 1.215 2370.23 Tell me if you're having trouble!