Question

Solve for principal Interest $60Rate 4%90 days-ordinary

Answer 1

To solve this we will use the simple interest formula

`\begin{gathered} I=(PRT)/(100) \\ where,\text{ I = interest = \$60} \\ R=rate=4\%=(4)/(100)=0.04 \\ P=principal=? \\ T=time=90\text{ days } \end{gathered}`

But we will divide by 365 days because the time is in days, which is 90 days, so we have

`\begin{gathered} I=(PRT)/(100*365) \\ 60=(P*0.04*90)/(100*365) \\ 60=(3.6P)/(36500) \end{gathered}`

cross multiplying we have

`\begin{gathered} 3.6P=36500*60 \\ P=(36500*60)/(3.6) \\ P=608,333.33333333 \end{gathered}`

Hence the Principal is $608,333.33