P = 1000 R = 50.05 I = 7 1/4
start date =
End date = Nov 16 2007
help i'm stuck
Would it be correct to guess that "P" is the principal, "R" is the rate of interest, "I" is the interest earned, and you are needing to find "t", the term for the investment or loan? If so, what assumptions should be used? For instance, are you using the Banker's Rule?
When you reply, please include a clear listing of your work and reasoning so far, so we can "see" where you're having trouble. Thank you!
No, that is not the entire problem. It might well be that there are a number of problems giving information like that after some general information. Here, we would certainly have to know if this was simple interest or compound interest. And if compound interest compounded over how often?
Assuming this is simple interest, the interest paid each year would be 0.0725(1000)= $72.50. Since the interest paid is less than that, $50.05, the time period must be less than a year: 50.05/72.50= 0.69 of a year. How many days, or months and days is that? "Back off" from Nov. 16, 2007 by that much.
Of course, if this is compound interest, that calculation wrong.
Hello diehardmath4Since the heading on your second posting is Simple Interest, I'm sure that HallsOfIvy's answer is correct, although you may need another decimal place to be sure of getting the day right. In fact, the answer is 0.690 of a year.
Multiply this by 365 to get the number of days: 252 days. Now work back 252 days from Nov 16 2007. The easiest way of doing this is to use a spreadsheet like Excel; enter the date in one cell, and then in another cell create a formula to subtract 252 from the first cell. Excel will then display the answer as a date. The answer I've got is Mar 9 2007.
Grandad