Algebra 1: Common Core (15th Edition)

Published by Prentice Hall
ISBN 10: 0133281140
ISBN 13: 978-0-13328-114-9

Chapter 2 - Solving Equations - 2-9 Percents - Lesson Check: 7

Answer

$75

Work Step by Step

Use the simple interest formula: I=Prt The interest is 75. The annual interest rate is 0.04. The time is 1 year. You have to find the principal. Substitute all the values and solve: 75=p(0.04)1 75=0.04P 1875=P Using the principal, we find the interest for the second year: I=1875(0.04)(2-1) I=75(1) I=75 The interest for the following year is $75.
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