When money is invested at 4.5% simple interest for 4 months, the interest is $75. Find the principal

Question

asked Nov 22, 2021 6.7k views

1 Answer

Arthur Weborg · Answer 1 · 2021-11-29T09:28:45+0000

Answer: $555.6

Explanation:

Simple interest = Principal x Rate x Time

Principal = Interest/Rate x Time

From the question, interest = $75

Rate= 4.5%; 4.5/100= 0.045

Time= 4 months

Slot the values into the formula:

P= 75/0.045 × 4/12

= 75/0.135

P= $555.6