Question

Sam received $10.50 in interest after placing money in his bank. if the account paid 4% in simple interest and he only left it in the account for 9 years, what is the principal?​

Answer 1

$29.166

Step-by-step explanation:

I = p x r x t

Where I= Interest: $10.50

P= principal amount: ????

r= interest rates: 4% or 0.04

t= time in years: 9

Therefore;

$10.50 = P x 0.04 x 9

$10.50 = P0.36

P=$10.50/0.36

P=29.166

Principal = $29.166