Elementary Algebra

Published by Cengage Learning
ISBN 10: 1285194055
ISBN 13: 978-1-28519-405-9

Chapter 4 - Proportions, Percents, and Solving Inequalities - Chapter 4 Review Problem Set: 38

Answer

4500 dollars is needed.

Work Step by Step

The interest formula is: i = P $\times$ r $\times$ t. To find the principal, or P, we divide i by r $\times$ t. So, P = $\frac{i}{r\ \times\ t}$ i = 540 r = 6% = 0.06 t = 2 Substitute these values into the formula to find out the principal needed. P = $\frac{540}{0.06\times 2}$ P = $\frac{540}{0.12}$ P = 4500 4500 dollars is needed.
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