Answer:
The price of the carpet was [tex]\$3,697.20[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]I=P(rt)[/tex]
where
I is the Final Interest Value
P is the Price of the carpet
r is the rate of interest
t is Number of Time Periods
in this problem we have
[tex]t=3\ years\\ P=\$?\\ I=\$1,081.43\\r=0.0975[/tex]
substitute in the formula above
[tex]1,081.43=P(0.0975*3)[/tex]
[tex]1,081.43=P(0.2925)[/tex]
Solve for P
[tex]P=1,081.43/(0.2925)[/tex]
[tex]P=\$3,697.20[/tex]
