Answer:
$118.95
Explanation:
Assuming simple increase:
Use the equation for amount for simple interest
A = P(1 + rt)
A is the total at the end of the time period.
r is the rate of interest in decimal form.
t is the time period length.
P is the principal amount.
Substitute values we know into the equation
5.6% in decimal form is 0.056
A = P(1 + rt)
145.60 = P(1 + (0.056)(4))
Simplify
145.60 = P(1.224)
Isolate P
P = 145.60/1.224
P ≈ 118.95 (Not equal because rounded to 2 decimal places)
The principal amount is $118.95.