Question

In 25 years, a bond that paid 4.75% simple interest earned $4,750 interest. What was the principal of the bond in dollars?

Answer 1

2000

Explanation:

Answer 2

$ 4000

Explanation:

Given,

Rate ( R ) = 4.75 %

Time ( T ) = 25 years

Simple Interest ( I ) = $ 4,750

Principal ( P ) = ?

Finding the principal

We know that,

`\boxed{ \sf{principal = (interest \: * 100)/( \: time \: * \: rate) }}`

plug the values

⇒
`\sf{ (4750 * 100)/(4.75 * 25) }`

Calculate

⇒
`\sf{(475000)/(118.75) }`

⇒$
`\sf{4000}`

Hope I helped!

Best regards!!