Question

Find the missing value. Principal: ?, Rate 15%, Time: 2 yrs, Simple interest 564

Answer 1

Step 1

State the formula for simple interest

`A=p(1+rt)`

where;

`\begin{gathered} A=p+i \\ r=(15)/(100)=0.15 \\ t=2 \\ i=564 \end{gathered}`

Step 2

Find P, the principal.

`\begin{gathered} P+564=P(1+0.15(2)) \\ P+564=P(1+0.3) \\ P+564=P(1.3) \\ 1.3P-P=564 \\ 0.3P=564 \\ P=1880 \end{gathered}`

Therefore, the principal= 1880