Answer:
The principal is $25,000.00
Interest = $23.29 Rounded to the nearest penny.
Explanation:
Interest = principal x rate x time
125 = p (.025)(2)
1250 = p.05 Divide both sides by .05
=

25,000 = p
The principal is $25,000.00
Interest = Principal x Time x Rate
Interest = 1000(.017) ( 500/365)
Interest = $23.29 Rounded to the nearest penny.