Finding the Simple Interest for a specific year

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Homework Help Overview

The discussion revolves around calculating the simple interest for a specific year, focusing on a principal amount of $49,000, an interest rate of 57 1/7%, and a time period of 4 years. Participants are examining the implications of the interest calculation for the second year.

Discussion Character

  • Exploratory, Assumption checking, Conceptual clarification

Approaches and Questions Raised

  • Participants discuss the calculation of simple interest and question whether the principal for the second year includes interest from the first year, potentially indicating a misunderstanding of the problem's nature. There is also uncertainty regarding the original poster's phrasing and intent.

Discussion Status

The conversation is ongoing, with participants providing calculations and expressing doubts about the correctness of the approach. Some suggest that the problem may have been misinterpreted, while others defend the original poster's terminology.

Contextual Notes

There is mention of the original poster's potential language barrier, which may affect the clarity of the problem statement. Additionally, the high interest rate prompts discussion about the nature of simple versus compound interest.

Benjamin_harsh
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Homework Statement
P = 49000; R = 57 1/7%; T = 4 yrs; SI of 2nd year = ?
Relevant Equations
R = 57 1/7% i.e 4/7. i.e Interest/Principle
P = 49000; R = 57 1/7%; T = 4 yrs; SI of 2nd year = ?

R = 57 1/7% i.e 4/7. i.e Interest/Principle.

Principle; 7 corresponds to 49000.

After this how to proceed?
 
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Since this is 'simple' interest, it is just the interest rate times the principle:
0.57286 (to 5 decimal places) times $49000. Or, since 49000 is divisible by 7 (I presume that is what you mean by "7 corresponds to 49000) 57 and 1/7 equals 399/7+ 1/7= 400/7 so you have (400/7)(49000)/100= 400(70)= 28000.

("57 and 1/7 percent is amazingly high interest!)
 
HallsofIvy said:
Since this is 'simple' interest, it is just the interest rate times the principle:
0.57286 (to 5 decimal places) times $49000. Or, since 49000 is divisible by 7 (I presume that is what you mean by "7 corresponds to 49000) 57 and 1/7 equals 399/7+ 1/7= 400/7 so you have (400/7)(49000)/100= 400(70)= 28000.
I'm not sure this is the correct calculation. The OP is not a native speaker of English, so might not have made an exact translation of the problem.

My reasoning is that in asking for the simple interest for the second year, it's possible that the principal (note spelling) at the start of the second year includes the interest earned in the first year. If so, this is really a problem about compound interest. If the problem really is about simple interest, then the interest earned each year will be the same, so I don't understand why the problem asked specifically about the second year, rather than the interest earned each year.
 
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Mark44 said:
I'm not sure this is the correct calculation. The OP is not a native speaker of English, so might not have made an exact translation of the problem.

My reasoning is that in asking for the simple interest for the second year, it's possible that the principal (note spelling) at the start of the second year includes the interest earned in the first year. If so, this is really a problem about compound interest. If the problem really is about simple interest, then the interest earned each year will be the same, so I don't understand why the problem asked specifically about the second year, rather than the interest earned each year.
Yes, it is conceivable that the OP posted the wrong problem. But I don't see how we can assume that! The OP specifically said "simple interest". I believe him!
 

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