Question

Imani earned $90 in interest after three years on an account that paid 4% simple interest annually. Use the formula I = Prt to find Imani's principal balance. (2 points) $75.00 $108.00 $750.00 $1,080.00

Answer 1

$90

Explanation:

You want the principal invested at 4% that earned $90 in simple interest after 3 years.

Formula

You are given the formula ...

I = Prt

Filling in the given values, you can solve for P.

90 = P×0.04×3

90/0.12 = P = 750 . . . . . divide by the coefficient of P

Imani's principal balance was $750.