Question

Suppose that an account earns 5.9​% interest and after 2 years the balance is $ 4472. Find the principal that was invested. Use the formula BequalsPplus​Prt, which is used to calculate the balance in an account if simple interest is added to a principal P at an interest rate of r after t years.

Answer 1

The principle amount = $4000

Explanation:

Formula:

Simple interest I = PTR/100

P - Principle amount

T - Number of years

R - Rate of interest

To find principle amount

Here , P = ?, T = 2 years, R = 5.9% and p + I = $4472

I = PTR/100

P + (P*2**5.9)/100 = 4472

P[1 + 11.8/100] = 4472

P[111.8/100] = 4472

P = (4472*100)/111.8 = 4000

Therefore the principle amount P = $4000