Question

The interest ii is $125, the rate rr is 6%, and the time tt is 1. What is the principal pp?

1.$56.25
2.$2,027.08
3.$2,083.33

Answer 1

To find the principal (pp), we use the formula: Interest = Principal × Rate × Time. Given the values, the principal is $2083.33.

Step-by-step explanation:

To find the principal (pp), we can use the formula:

Interest = Principal × Rate × Time

Given that the interest (ii) is $125, the rate (rr) is 6%, and the time (tt) is 1:

$125 = Principal × 0.06 × 1

Divide both sides of the equation by 0.06 to solve for Principal:

Principal = $125 / 0.06 = $2083.33

Therefore, the principal is $2083.33, so the correct answer is option 3. $2,083.33