EXAMPLE:Find the interest on a loan whose principal (P) is $4800 at a rate
of 5% for 6 years. UseI¼PRT.
SOLUTION:
GOAL: You are being asked to find the interest.
STRATEGY: Use the formulaI¼PRT.
IMPLEMENTATION:
I¼PRT
¼$ 4800 5 % 6
¼$ 4800 ð 0 : 05 Þ 6
¼$ 1440
EVALUATION: You can estimate the answer by rounding $4800 to $5000
and then finding 5% of $5000, which is 0.05$5000¼$250. The interest for
one year is about $250. The interest for 6 years then is 6$250¼$1500.
Since this is close to $1440, the answer is probably correct.
EXAMPLE: Find the Celsius temperature (C) when the Fahrenheit
temperature (F) is 86 8. Use C¼^59 ðF 32 Þ.
SOLUTION:
GOAL: You are being asked to find a Celsius temperature.
STRATEGY: Use the formula C¼
5
9
ðF 32 Þ.
IMPLEMENTATION:
C¼
5
9
ðF 32 Þ:
C¼
5
9
ð 86 32 Þ
¼
5
9
ð 54 Þ
¼ 308
LESSON 7 Using Formulas 61