Question

PLEASE HELPPPPPP NEED ASAP

The formula for simple interest is I=Prt, where I is the interest, P is the principal, r is the interest rate, and t is time (in years). Solve the formula for P. Then use the formula to determine the principal for an account with a 2% interest rate that earned $300 in simple interest over the course of 8 years.

Answer 1

Replace the values for the letters in the given equation and solve for the missing letter:

I = Prt

Solve the equation for P by dividing both sides by rt:

P = I/rt

I = 300

r = 2% = 0.02

t = 8

O = 300/(0.02*8)

P = 300/0.16

P = $1,875