Answer:
$6300
Step-by-step explanation:
A = P(1 + rt)
A = Total Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
r = Rate of Interest per year in decimal; r = R/100
t = Time Period involved in months or years
P = $4500
t = 5 years
r = 8% = .08
A = P(1 + rt)
A = 4500 ( 1 + (.08*5))
A = 4500 ( 1 + .4)
A = 4500 (1.4)
A = $6300
Susan will pay $6300 for the furniture
________________________________________________________
The equation I used is the same as what you were given:
I = Prt
A = I + P Re-write as I = A - P
So you plug in A - P for I:
A - P = Prt Add P to each side
A - P + P = Prt + P
A = Prt + P Pull P out
A = P(rt + 1) Re-arrange
A = P(1 + rt)
Same equation!
