Question

Find the principal invested if $495 interest was earned in 3 years at an interest rate of 6%.

Answer 1

Answer: $2750

Explanation:

Formula to calculate interest : I = Prt , where P = Principal amount , r = rate of interest ( in decimal) , t= time.

Given: I= $495

t= 3 years

r= 6% = 0.06

Then, according to the above formula:

`495 = P (0.06*3)\\\\\Rightarrow\ P=(495)/(0.18)\\\\\Rightarrow\ P=2750`

Hence, the principal invested = $2750