Question

What could be the Principal Amount, if rate if interest is 16% and $18 is earned as an interest after 3 months

Answer 1

The principal amount is $37.5

Explanation:

Rate of interest= 16%

Rate of Interest = $18

Time = 3 months

Interest = (principal amount x rate of interest x time) /100

18 = (p x 16 x 3) /100

1800 = 48p

P = 1800/48

P = 37.5

The principal amount is $37.5