Question

Account (A) is a saving account , the interest earned after 1 year is $12 .If the interest rate is 3.2% for account (A). How much is the principle for account (A) ?3​

Answer 1

The principal for the account is $375.

Explanation:

This is a simple interest problem.

The simple interest formula is given by:

`E = P*I*t`

In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

The interest earned after 1 year is $12 .If the interest rate is 3.2% for account (A).

This means, respectively, that
`t = 1, E = 12, I = 0.032`

We want to find P.

`E = P*I*t`

`12 = P*0.032*1`

`P = (12)/(0.032)`

`P = 375`

The principal for the account is $375.