Question

if the interest earned is $750 and the interest rate is 12.5% and the time is 4 years what is the principal

Answer 1

$1,500

Explanation:

Interest = P × 12.5/100 × 4

750 = P × 0.5

P = 1500

Answer 2

There would be : 750 x (1 + 12.5/100)^4 = 1201.35 dollar after 4 years, with the earning is 750$ and interest rate is 12.5%.