In 3 years, an investment earns $108 simple interest at a rate of 3%. Find the principle.
Thank You.
To find the principal, we need to use the formula for simple interest:
Simple Interest = Principal * Rate * Time
In this case, we have the following information:
Simple Interest = $108
Rate = 3% or 0.03 (decimal)
Time = 3 years
Substituting these values into the formula, we get:
$108 = Principal * 0.03 * 3
Now, we can solve the equation for the principal:
Principal = $108 / (0.03 * 3)
Principal = $108 / 0.09
Principal = $1200
So, the principal is $1200.
I = PRT
108 = P * 0.03 * 3
Solve for P.