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Unformatted text preview: i = Prt = ( ) = So the total amount due is Ex. If at the end of a six month loan period a borrower repays the original $300, plus $30 in interest, what was the rate of interest? Using the formula i = Prt, we get So r = , corresponding to an interest rate of Ex. Which of the following two scenarios involving a $2000 purchase entails paying the higher simple interest rate? i) Paying $1000 as a down payment and then $1150 in 6 months. ii) Paying $500 as a down payment and then $1700 in 6 months. i) In this case the principal is the cost of the purchase minus the down payment, and the interest is the total of the payments minus the cost of the purchase. So i = Prt So the interest rate is ii) In the second case the principal is 2000 500 = $1500, and the interest is (500 + 1700) 2000 = $200. So i = Prt So the interest rate is Ex. (10.B.25) Ex. (10.B.27) Ex. (10.B.29) Ex. (10.9) http://www.bankrate.com/calculators.aspx...
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 Spring '08
 EVINSON
 Math, Calculus

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