Question

Evander holyfield (known as the man who had part of his ear bit off by mike tyson) made $250 million during his boxing career but declared bankruptcy due to poor financial choices. his july interest at 15% was $155. what was evander's principal at the beginning of july?

Answer 1

Using the simple interest formula and the given monthly interest and annual rate, the principal at the beginning of July for Evander Holyfield's account was calculated to be $12,400.

Step-by-step explanation:

To calculate the principal Evander Holyfield had at the beginning of July, based on the interest for that month, one can use the simple interest formula: Interest = Principal × Rate × Time. We are given that the July interest is $155 and the annual interest rate is 15%. Since the interest given is for one month, the time in the formula would be 1/12 (when the time is in years).

Therefore, we can rearrange the formula to solve for the principal: Principal = Interest / (Rate × Time). Plugging in the numbers, we get Principal = $155 / (0.15 × 1/12). After calculation, the principal comes out to be $12,400.