Question

Interest =$145.62 , time = 2 years, rate =1.24%. Find the principal. Round to the nearest hundredth place.

a. $5811.22
b. $5871.77
c. $5902.04
d. $5894.16

Answer 1

To find the principal, use the formula Principal = Interest / (rate * time). Rounding to the nearest hundredth place, the principal is approximately $5811.29.

Step-by-step explanation:

To find the principal, we can use the formula: Principal = Interest / (rate * time).

Substituting the given values, we get: Principal = 145.62 / (0.0124 * 2) = 5811.29032258.

Rounding to the nearest hundredth place, the principal is approximately $5811.29.

Therefore, the correct answer is $5811.22 (option a).