Rate is 9%. Time is 4 years. Simple interest is $354.60. What's the principal? Please show me how you got to the answer as well.
I = PRT
354.6 = P * 0.9 * 4
Solve for P
985
To find the principal, we can use the formula for simple interest:
Simple Interest = (Principal × Rate × Time) / 100
We can rearrange this formula to solve for the principal:
Principal = (Simple Interest × 100) / (Rate × Time)
Given:
Rate = 9%
Time = 4 years
Simple Interest = $354.60
Substituting these values into the formula, we get:
Principal = ($354.60 × 100) / (9% × 4 years)
First, let's convert the rate from a percentage to a decimal by dividing it by 100:
9% ÷ 100 = 0.09
Now, let's substitute the values and solve for the principal:
Principal = ($354.60 × 100) / (0.09 × 4 years)
Principal = ($354.60 × 100) / (0.36 years)
Principal = $35460 / 0.36
Principal = $98,500
Therefore, the principal is $98,500.