what amount of principal would yield an interest of $36 in 3 years at a 3% simple interest rate?
To find the principal amount that would yield an interest of $36 in 3 years at a 3% simple interest rate, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest
P = Principal
r = Rate of interest
t = Time (in years)
To find the principal (P), we rearrange the formula:
P = I / (r * t)
Now, let's plug in the values:
I = $36 (the given interest)
r = 3% = 0.03 (the decimal form of the interest rate)
t = 3 years (the given time)
P = $36 / (0.03 * 3)
P = $36 / 0.09
P = $400
Therefore, the principal amount that would yield an interest of $36 in 3 years at a 3% simple interest rate is $400.
P(.03)(3) = 36
P = ....