Question

Solve the formula I=Prt to find the principal, P, when I=$162, r=3.6%, and t=3 years.

Answer 1

1500$

Explanation:

The formula to use in this problem is the one for the simple interest:

`I=Prt`

where:

I is the interest

P is the principal

r is the rate of interest

t is the time

In this problem, we have:

I=$162 (interest)

r=3.6%, which we can rewrite as

`r=(3.6)/(100)`

and

t=3 years

Therefore, re-arranging for P, we find the principal:

`P=(I)/(rt)=(162)/((3.6)/(100)\cdot 3)=1500`