Matty Kaminsky owns a new Volvo. His June monthly interest was $400. The rate is 8 ½ percent. Matty's principal balance at the beginning of June is: (Use 360 days) (Points
To find Matty Kaminsky's principal balance at the beginning of June, we need to use the formula for calculating simple interest:
Principal balance = Interest / (Rate * Time)
First, let's convert the interest rate from a percentage to a decimal. The rate is 8 ½ percent, which is equivalent to 8.5%.
Rate = 8.5% = 8.5/100 = 0.085 (as a decimal)
Next, we'll use the given June monthly interest of $400 to find the principal balance. We can rearrange the formula and solve for the principal balance:
Principal balance = Interest / (Rate * Time)
Principal balance = $400 / (0.085 * 1/12)
Principal balance = $400 / (0.085 * 12)
Principal balance = $400 / 1.02
Principal balance = $392.16 (rounded to the nearest cent)
Therefore, Matty Kaminsky's principal balance at the beginning of June is approximately $392.16.
In order to calculate Matty Kaminsky's principal balance at the beginning of June, we need to use the formula for calculating interest:
Interest = Principal * Rate * Time
Where:
Principal = Initial balance
Rate = Interest rate per period
Time = Number of periods
Given that the interest for the month of June was $400 and the rate is 8 ½ percent, let's proceed step-by-step to find the principal balance:
1. First, convert the interest rate to a decimal by dividing it by 100:
8 ½ percent = 8.5/100 = 0.085
2. Determine the number of periods. Since we are using 360 days, and we assume each month has 30 days:
Number of periods = 30
3. Rearrange the formula to solve for the principal:
Principal = Interest / (Rate * Time)
Principal = $400 / (0.085 * 30)
4. Calculate the principal balance:
Principal = $400 / 2.55
Principal ≈ $156.86
Therefore, Matty Kaminsky's principal balance at the beginning of June is approximately $156.86.