Question

How much money would produce $70 as simple interest at 3.5% per
annum?

Answer 1

$2000

Explanation:

Simple Interest = $70

Rate = 3.5%

Time = 1

Principal = ?

Simple Interest = (Principal × Rate × Time)/100

Principal = (Simple Interest × 100)/(Rate × Time)

Principal = (70 × 100)/(3.5 × 1)

Principal = 7000/3.5

Principal = 14000/7

Principal = 2000