Question

An account earns simple interest. Find the principal.

Interest earned: $27
Principal: ?
Interest rate: 1.5%
Time: 2 years
The principal is $

Answer 1

$ 900

Explanation:

Simple interest = Principle * Time * Rate / 100

Now by substituting :

27 = Principle * 2 * 1.5 / 100

Principle = 27 * 100 / 2 * 1.5

Principle = 2700 / 3

So Principle = $ 900

Hope it helps