Solve the problem.
-Simple interest is calculated using the formula, interest = principal · rate · time or i = prt. Jenny Brooks invested a certain amount of money saved for 1 year at a certain annual interest rate (simple interest)yielded $16.83 in
Interest. If we had added $34 to the principal and reduced the interest rate by 2 percentage point(s), the interest
Would have been the same. Find the principal and the rate.
A)$3.43, 442%
B)$153.00, 11%
C)$13.00, 11%
D)$13.00, 9%

Question

Quizplus · Accepted Answer

The correct principal and rate are found by setting up equations based on the given information and solving for the variables. The original interest formula is $i = prt$, where $i = 16.83$, $p$ is the principal, $r$ is the rate, and $t = 1$ year. For the modified scenario, the new interest is the same ($16.83$), but the principal is $p + 34$ and the rate is $r - 0.02$ (since a 2 percentage point decrease is equivalent to subtracting 0.02 from the rate when the rate is expressed as a decimal). Setting up the equations based on these scenarios and solving for $p$ and $r$ leads to the conclusion that the principal is $153.00 and the rate is 11%.

Solve the Problem. -Simple Interest Is Calculated Using the Formula, Interest = Principal