Question

At simple interest:Find the principal rounded to the nearest cent given:Rate: 10%Time (in days): 80Interest: $112

Answer 1

$5,110

Explanation:

The simple interest on a principal, P is found using the formula:

`SI=\frac{Prin\text{cipal}* Rate* Time}{100}\text{ where Time is in years.}`

Given:

• Rate: 10%

,

• Time (in days): 80 = 80/365 years

,

• Interest: $112

Substitute these values into the formula:

`\begin{gathered} 112=(P*10*(80)/(365))/(100) \\ \implies P*10*(80)/(365)=112*100 \\ P=(112*100)/(10*(80)/(365)) \\ P=\$5,110 \end{gathered}`

The principal is $5,110.