The simple interest formula i equals p times r times t gives the interest earned on an investment of p dollars at interest rate r for a time of t years. how much does hector need to invest at a rate of 2% in order to earn $25 interest in 3 years?

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Mathematics

Allisson Clayton

7 September, 13:01

The simple interest formula i equals p times r times t gives the interest earned on an investment of p dollars at interest rate r for a time of t years. how much does hector need to invest at a rate of 2% in order to earn $25 interest in 3 years?

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Patience Pugh · Answer 1

Assuming continuously compounding interest: A = Pe^ (rt) A = Pe (0.02) (3) A = P (1.062) P would be about $417: A = (417) (1.062) = $442.85 $442.85 - $417 = $25.85