Xyza Marie S.

Amper BEED 1A
MATH 101
SM: ASSIGNMENT 1

5-Word Problem with Answer About

Simple Interest

A sum of $46875 was lent out at

simple interest and at the end of 1
year 8 months, the total amount was
$50000.Find the rate of interest per
year.
Solution:
From the given information, we have
P = 46875 and A = 50000
Interest = Amount - Principal
I = 50000 - 46875
I = 3125
The value of n must always be in
years. But in the question, it is given
in both years and months.
To convert months to years, divide
the given months by 12.
1 year 8 months = 1 8/12 years or
1⅔ years
So, the value of n is 1⅔ or 5/3.
Formula for simple interest:
I = Pnr/100  A = $2937.50
Substitute P = 46875 and n = 5/3.
3125 = (46875 ⋅ 5/3 ⋅ r)/100
312500 = 78125 ⋅ r
4=r
r = 4%
Find the accumulated value of
the deposit $2500 made in
simple interest for 3.5 years at
5% rate of interest per year.
Solution:
First let us find the interest
earned and then we can find
the accumulated value.
I = Pnr/100 
Substitute P = 2500, n = 3.5
and r = 5.
I = (2500 ⋅ 3.5 ⋅ 5)/100
I = 25 ⋅ 3.5 ⋅ 5
I = 437.50
Accumulated value:
A=P+I
A = 2500 + 437.50
How much interest will be earned
on $3000 at 7% simple interest
per year for 9 months?
Solution:
Formula for simple interest:
I = Pnr/100 ----(1)
Substitute P = 3000 and r = 7%.
The value of n must always be in
years. But in the question, it is
given in months.  I = Pnr/100
To convert months to years, divide
the given months by 12.
9 months = 9/12 years or 3/4
years
n = 3/4
In (1), substitute P = 3000, r =
7% and n = 3/4.
I = (3000 ⋅ 3/4 ⋅ 7)/100
= 30 ⋅ 0.75 ⋅ 7
= $157.50
Find the accumulated value of
the deposit $2500 made in
simple interest for 3.5 years at
5% rate of interest per year.
Solution:
First let us find the interest
earned and then we can find
the accumulated value.
 
Substitute P = 2500, n = 3.5
and r = 5.
I = (2500 ⋅ 3.5 ⋅ 5)/100
I = 25 ⋅ 3.5 ⋅ 5
I = 437.50
Accumulated value:
A=P+I
A = 2500 + 437.50
A = $2937.50

Find the simple interest for 2 years on

$2000 at 6% per year.

Solution:
Formula for simple interest:
I = Pnr/100
Substitute P = 2000, n = 2 and r = 6.
I = (2000 ⋅ 2 ⋅ 6)/100
I = 20 ⋅ 2 ⋅ 6 
I = $240