Question

Please help me. I know I’m solving for the principal but need help with the steps

Answer 1

Given: The information below

`\begin{gathered} time(t)=5\text{years} \\ rate(r)=4\%=0.04 \\ Interest(I)=40 \end{gathered}`

To Determine: How much Austine invested

Solution

Please note that the amount invested is the Principal

The formula combining principal, rate, time and interest for simple interest is

`I=\text{Prt}`

Make P the subject of the formula

`P=(I)/(rt)`

Substitute for I, r and t given into the formula as shown below

`\begin{gathered} P=(40)/(0.04*5) \\ P=(40)/(0.2) \\ P=200 \end{gathered}`

Hence, the amount invested by Austine is $200