Problema Solution
If Mia Wong invests $73,000 at 7 1/2% annual simple interest on March 1, when will her investment be worth $75,760?
Answer provided by our tutors
P = $73,000 is the principal
r = 7 1/2 = 7.5 % or 0.075 the annual rate as decimal
t = the time in years
A = $75,760 the future value
A = P(1 + rt)
73000(1 + 0.075t) = 75760
by solving we find:
t = 184/365 years
click here to see the step by step solution of the equation:
t = (184/365)*365 day
t = 184 days
184 days after March 1 is
March has 31 day
April has 30 days
May has 31 day
June has 30 days
July has 31 days
August has 31 day
31 + 30 + 31 + 30 + 31 + 31 = 184 days
Thus on September 1st the investment will be $75,760 worth.