Solve I=PRT if I=105, P=700 and r=0.05

Question

Mahoney

Mathematics

30 January, 09:33

Solve I=PRT if I=105, P=700 and r=0.05

+2

Answers (1)

Know the Answer?

Hugo Quinn · Answer 1

In this investment problem, what we need to find out is the time (T) in years of the loan. Seeing that you already have the Interest (I) which is 105 which is the total amount of interest paid, the Principal (P) which is the amount lent or borrowed, and lastly the Rate (r) which is the percentage of the principal charged as interest each year, you may now easily get the Time (T) needed in years. Substituting the amounts to the formula given. Time (T) in years is equivalent to 3 years. I = PRT by substitution, 105 = 700 (0.05) T. Then what happens when you multiply P and r is 105 = 35 T. When you divide 105 by 35 you get T which is 3 years.