Question

Algebraically manipulating the formula 1 = Prt, find the principal (PV) deposited in a savings account which eamed $11,000 in interest at a simple interest rate of9.5% for 15 years to the nearest whole cent).$7,312.07$8,083.92$7,719.30$6,987.44None of these choices are correct.

Answer 1

First, write out the given datas

Interest I = $11,000

Rate R = 9.5%

Time T = 15 years

Principal P = ?

Next, use the Interest formula below, to find the Principal p.

`\begin{gathered} \text{I = }(PRT)/(100) \\ \text{Cross multiply and make P the subject of the relation.} \\ 100I\text{ = PRT} \\ \text{Divide through by RT to make P subject of the relation.} \\ (100I)/(RT)\text{ = }(PRT)/(RT) \\ P\text{ = }(100I)/(RT) \end{gathered}`

Next, substitute the value of I, T and R to find the Principal.

`\begin{gathered} \text{Therefore,} \\ P\text{ = }\frac{100\text{ x 11000}}{9.5\text{ x 15}} \\ P\text{ = }(1100000)/(142.5) \\ P\text{ = \$7719.29} \end{gathered}`

Final answer:

P = $7719.3