Answer & Step-by-step explanation:
To calculate the principal (the initial amount of money) if the maturity value is $4,500 and the simple interest is $350, you can use the formula for simple interest:
\[I = P \cdot r \cdot t\]
Where:
- I is the simple interest ($350).
- P is the principal (the amount we want to find).
- r is the annual interest rate (which we need to determine).
- t is when the money is invested or borrowed for (1 year).
We are given that the simple interest is $350, and the interest rate is what we need to find. So, let's rearrange the formula to solve for P:
\[P = \frac{I}{r \cdot t}\]
Now, plug in the values:
\[P = \frac{350}{r \cdot 1}\]
Since the length of the term is one year, t = 1.
Now, we need to find the annual interest rate "r."
\[P = \frac{350}{r}\]
Now, solve for P:
\[P = \frac{350}{r}\]
To find P, we need to know the interest rate "r." Without knowing the interest rate, we can't calculate the principal amount. If you have the interest rate (r), you can plug it into the equation to find the principal amount (P).