Precalculus (6th Edition)

Published by Pearson
ISBN 10: 013421742X
ISBN 13: 978-0-13421-742-0

Chapter 1 - Equations and Inequalities - 1.1 Linear Equations - 1.1 Exercises - Page 93: 60

Answer

(a) $\$33449.25$ (b) $\$2549.25$

Work Step by Step

(a) For a given principal $P$, rate $r\%$, and a time period $t$, the amount after simple interest is $p(1+r\% \times t)$. Note that the time in this formula is in years, so 18 months = 1.5 years. In this case, this evaluates to $30900(1+\frac{5.5}{100} \times 1.5) = \$33449.25$. (b) The interest is amount - principal = $\$(33449.25-30900) = \$2549.25$
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