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

User Yulong Ao
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1 Answer

7 votes

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

User Arthur Weborg
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