Question

PrincipalInterest RateTime in MonthsSimple Interest?4%6$802

Answer 1

We have the following formula that correlates all those amounts:

`I=\text{PRT}`

Where:

I = Simple Interest

P = Principal

R = Interest Rate

T = Time in Months

We already have 3 of those values. If we just substitute them in the formula, we're going to find the missing one.

Solving for 'P':

`\begin{gathered} 80=P*0.04*6 \\ \Rightarrow P=(80)/(0.04*6)=(80)/(0.24)=333.33 \end{gathered}`

With this, we have our result. The principal amount is $333.33