Question

Interest rate is 4.25%, the time is 3 1/4 years, simple interest is $330. What is the principal?

Answer 1

$2389.14.

Explanation:

Use the formula

I = PRT/100 where I = interest , P is the principle, t = time and R = the rate.

330 = P * 4.25 * 3.25 / 100

33000 = P * 13.8125

P = 33,000 / 13.8125

P = $2389.14.

Answer 2

$2389.14

Explanation:

The equation is I = PRT

330= (0.0425)(3.25)P

P=2389.14