Question

How much must harry's hardware deposit at a 14.5% annual interest for 240 days in order to earn $500 in simple interest?

Answer 1

Total deposit to earn $500 simple interest at 14.5% annual interest for 240 days is $5244.25287356

Step-by-step explaination:

Given, annual interest= 14.5%

Time = 240 days =
`(240)/(365)yrs`

S.I = $500

we have to find the deposit to earn $500 simple interest at 14.5% annual interest for 240 days

∴ By simple interest formula,

`S.I = (P* R* T)/(100)`

⇒
`500 = (P* 14.5 * (240)/(365) )/(100)`

⇒
`P=(500* 365 * 100)/(145* 24)=5244.25287356`

Hence, Total deposit to earn $500 simple interest at 14.5% annual interest for 240 days is $5244.25287356

Answer 2

To get the formula for the principal, we will use the formula for the interest and derived it from there:

I = Prt is the equation then it will be P = I /rt since we are looking for the principal.

P = I /rt

= $500 / (0.145 x 240/360)

= $500 / 0.0967

= $5170.63

To check:

I = Prt

= $5170.3 x 0.145 x 240/360

= $499.8 or $500