Answer:
Explanation:
We can use the formula for simple interest to calculate the principal:
Simple Interest = (Principal * Rate * Time) / 100
Where:
Principal is the initial amount of money borrowed or invested
Rate is the interest rate per year
Time is the time period for which the interest is calculated
We know that:
Simple Interest = K500
Rate = 15%
Time = 5 years
Substituting these values in the formula, we get:
K500 = (Principal * 15 * 5) / 100
Simplifying this equation, we get:
K500 = (3 * Principal) / 4
Multiplying both sides by 4/3, we get:
(4/3) * K500 = Principal
Therefore, the principal that earned the simple interest of K500 at the rate of 15% for 5 years is:
(4/3) * K500 = (4/3) * 500 = K666.67
So, the principal is K666.67.