Question

Interest earned:$45 Principal: ? Interest rate: 3% Time: 2 years

Answer 1

The Principal = $75,000

Explanation:

Formula for finding the principal:

I × 100/ R × T

Therefore;

Principal = 45 × 100 / 3/ 100 × 2

`= \: (45 * 100)/( (3)/(100) * 2) \\ = (4500)/( (3)/(50) ) \\ = 4500 * (50)/(3) \\ = 1500 * 50 \\ = 75000.00`

Which means that the Principal is $75,000.00