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Hey I Forgot How To Do This. How Do I Solve For $1500 at 9% For 2 Years?

 Apr 17, 2020
 #1
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+1

Use the formula:   A  =  P(1 + r)y

                             A  =  1500(1 + 0.09)2

                             A  =  1500(1.09)2

 

Now, finish the calculation.

 Apr 17, 2020
 #2
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The Heading of his/her question says "Simple Interest".

 

1500 x 0.09 x 2 =$270 Simple interest for 2 years.

 

$1,500  +  $270  = $1,770 - Balance after 2 years.

 Apr 18, 2020
 #3
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\(I=\frac{PRT}{100}\) where \(I\) is the interest (What you will gain extra after the 2 years) 

\(P\) is the principle (The money you put) 

\(R\) is the rate of 9% etc..

The equation above finds the interest and not the total money! 

Indeed, total money after 2 years is just the same equation +p 

 

\(A=\frac{PRT}{100}+P\)

 

Now if you want interest to use this:  \(I=\frac{PRT}{100}\)

\(I=\frac{1500*9*2}{100}=270 \) dollars extra

 

Total amount: \(270+1500=1770\)

.
 Apr 18, 2020

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