I = P x R x T
1.
John just inherited $20,000 and wishes to invest
it to use as a down payment for a new house.
His local bank offered him a rate of 9.5% for 3 years. How much interest will John earn?
I = P x R x T
I = 20000 x 0.095 x 3
I = 5700
John
will earn $5700 in interest.
2.
Bill needs to receive $2000 each year from his
investment of $15000. At what interest
rate does he need to invest this money?
I = P x R x T
2000 = 15000 x r x 1
2000 = 15000r
0.13333 = r
The
interest rate needs to be 13.3%.
3.
Jenna has borrowed $500 and will pay 10% annual
interest. How much interest will she
pay each month?
I = P x R x T
I = 500 x 0.10 x 1/12
I = 4.16666667
She
will pay $4.17 interest each month.
4.
Will won the lottery. He wants to invest part of his winnings in an account that pays
12% per year and he wants to have $200,000 in this account after 4 years. How much should he invest in this account?
I = P x R x T
200000 = P x 0.12 x 4
200000 = 0.48P
416666.666667 = P
He
needs to invest $416666.67 in this account.
1.
Bill drives at an average rate of 68 mph for 3
hours. How far has he traveled after
the 3 hours?
D = R x T
D = 68 x 3
D = 204
Bill
traveled 204 miles.
2.
Pam is driving from Suwanee to Social Circle to
visit friends. If the distance is 52
miles and her average rate of speed is 65 mph, how long will it take her to get
to her friends’ house?
D = R x T
52 = 65 x T
0.8 = T
It will
take her 0.8 hr or 48 minutes.
3.
Mrs. Neal has gone to visit her new grandson in
Smyrna, TN. If the distance from her
house to Grayson’s house is 250 miles and the drive takes 4¼ hours, what is Mrs. Neal’s average rate of
speed?
D = R x T
250 = R x 4.25
58.82 = R
Her
average rate is 58.82 mph.