Homework Yr 11 - Maths - Simple Interest *Help Please*

Hi Sythe Members,

Please help me with my assignment in year 11 maths. All other questions are quite easy and I can do them without any issues. But creating two example equations for this question I'm finding it extremely difficult. Your help would be awesome!

Question II

Consider a Simple Interest investment which was able to earn the same amount of interest earned in part I above using the same original principal of $2500. Clearly describe and calculate two such possible Simple Interest investments that would satisfy this, the principal of $2500 (starting money) cannot change!

[End of Question II]

Interest made in Question I was = $547.49
Starting money in Question I was = $2500

Neither of these amounts can be changed when creating two simple interest equations. for Question II.

Conclusion; I need to find a % rate p.a. and time it took (years/months) to earn $547.49 in an simple interest account with $2500 starting money.

Formula's used to receive the following;

I = (P multiplied by R) multiplied by T divided by 100) = $
P = (100 multiplied by I) divided by (R multiplied by T) = $
R = (100 multiplied by I) divided by (P multiplied by T) = % p.a.
T = (100 multiplied by I) divided by (P multiplied by R) = Years

Definitions for the above;

I = Interest (amount bank will give/take)
P = Amount of money you start with
T = Time
R = % rate p.a.

Please help me work out two equations for question II, I'm totally stuck and lost what to even try to do. Big thanks to anyone who can help me. Please post if you need any to ask any questions. This is due tomorrow so please help!

Regards,

HardCloud

 

So, what you need to know is if you had an account with $2,500 in, how long it would take to earn $547.49 in interest?

 

Hello RS-Crispy,

Thanks for your response. Correct, I need to know how long and at what % p.a. you used. I need two equations total. So I need one with a interest rate and more years and one with lets say an interest rate with less years.

E.g 1) $2,500 at 8.5% over 11 years = $547.49
E.g 2) $2,500 at 2.2% over 60 years = $547.49

These are made up and aren't correct lol^.

Regards,

HardCloud

 

I=PRT
Let's say Time = 5 (years)
Rearranging the formula..
R = I/PT
R = $547.49/($2500)(5)
R = $547.49/$12500
R ≈ 0.04379
R = 4.379%

You can choose a random time and do the other using that formula.

 

Thank you so much.

 

Beat me too it, well done Nic0!

 

Solved!