Rate is 6% , time is 3 years, interest is $216.00, what is the principal?
I = p*r*t
216 = p * 0.06 * 3
216 = p * 0.18
216 / 0.18 = p
?? = p
p=1200
To find the principal, we can use the formula for calculating simple interest:
Interest = (Principal * Rate * Time) / 100
Here, the interest is given as $216, the rate is 6%, and the time is 3 years. Let's substitute these values into the formula and solve for the principal:
216 = (Principal * 6 * 3) / 100
To solve for the principal, we can rearrange the equation:
216 = (Principal * 18) / 100
Cross-multiplying:
216 * 100 = Principal * 18
21,600 = Principal * 18
Now, divide both sides of the equation by 18 to isolate the principal:
Principal = 21,600 / 18
Principal = $1,200
Therefore, the principal is $1,200.