## tightsnstuff 3 years ago To borrow money, you pawn your guitar. Based on the value of the guitar, the pawnbroker loans you \$960. One month later, you get the guitar back by paying the pawnbroker \$1,472. What annual interest rate did you pay? Round to the nearest tenth of a percent.

1. eyust707

whats the initial amount you got?

2. tightsnstuff

3. Hero

I got you

4. tightsnstuff

Did you just reply something? It didn't show up :(

5. tightsnstuff

Thank you!

6. Hero

or just 65.2%

7. tightsnstuff

Thanks! Can you help me with another, please?

8. Hero

Pawn brokers are loan sharks

9. tightsnstuff

F'reals hahaha

10. tightsnstuff

This is another question I am stuck on: A bank offers a CD that pays a simple interest rate of 5.5%. How much must you put in this CD now in order to have \$8,000 for a kitchen remodeling project in two years? Round to the nearest cent.

11. Hero

I = PRT 8000 = P(.055)(2) Solve for P

12. tightsnstuff

okay, Thanks! can you please stick with me while I try to work this out?

13. Hero

I will. Even if I leave for a moment, just post your answer

14. tightsnstuff

Thanks! Is it 727.27?

15. tightsnstuff

I did it again and got 7166.67?

16. tightsnstuff

Oy. Did it again and got 7,207.21

17. tightsnstuff

Are any of those right? I appreciate you looking.

18. Hero

72,727.28

19. Hero

You can only generate that much money in interest if you already have a ton of money to begin with. The worst part about is that you can't even touch that money. You have to keep at least that amount in the bank at all times.

20. tightsnstuff

This sound horrible. lol

21. tightsnstuff

Thank you so much for looking!

22. tightsnstuff

wait, that's a much bigger number than the original 8000?

23. Hero

8000 is not the original amount. That's the amount you would get in INTEREST after two years if you invested 27,727 dollars to begin with.

24. tightsnstuff

Ohhh okay. Thank you!