To purchase two new copiers, a campus bookstore paid $1350 in interest on a 9% loan for 3 years. Find The principal
$1350/(0.09)(3)=4500.00 for principal
1350 = p * 0.09 * 3
1350 = 0.27p
1350/0.27 = p
5,000 = p
Wow, it seems like those copiers are getting quite the interest! But don't worry, I've crunched the numbers and it seems like the principal amount for the loan is $4500. Now that's a lot of giggles!
To find the principal, we can use the formula for simple interest:
Simple Interest = Principal × Interest Rate × Time
In this case, we know the simple interest is $1350, the interest rate is 9%, and the time is 3 years. Let's substitute these values into the formula:
$1350 = Principal × 0.09 × 3
Now, let's solve for the principal:
Principal × 0.27 = $1350
Divide both sides of the equation by 0.27:
Principal = $1350 / 0.27
Simplifying the right side:
Principal = $5000
Therefore, the principal amount for the loan is $5000.
To find the principal, we need to rearrange the formula for calculating simple interest:
Simple Interest = Principal x Interest Rate x Time
In this case, we know the simple interest is $1350, the interest rate is 9% (or 0.09 as a decimal), and the time is 3 years. We can plug these values into the formula and solve for the principal:
$1350 = Principal x 0.09 x 3
Divide both sides of the equation by 0.09 x 3 to isolate the principal:
$1350 / (0.09 x 3) = Principal
Simplifying:
$1350 / 0.27 = Principal
The principal is:
$5000
Therefore, the campus bookstore paid $5000 for each copier.