Question

Question:Solve the formula I = Prt to find the principal, P, when I = $272.25, r = 2.2%, and t = 3 years.

Answer 1

Given in the question:

I = $272.25

r = r = 2.2%

t = 3 years

Let's re-equate the formula of Simple Interest to find P in terms of I, r, and t.

`I\text{ = Prt }\rightarrow\text{ P = }(I)/(rt)`

Let's plug in the values to find P.

`P\text{ = }(I)/(rt)`
`P\text{ = }(272.25)/(((2.2)/(100))(3))\text{ = }(272.25)/((0.022)(3))`
`P\text{ = }(272.25)/(0.066)`
`P\text{ = 4,125 = \$4,125}`

Therefore, the Principal Amount is $4,125.