Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as: (Points : 1)
$1,428,005.70
$4,128,005.70
$1,428,05.70
$1,420.70
None of these
To calculate the principal, we can use the formula:
Principal = (Simple Interest) / (Rate * Time)
Where:
Simple Interest = $11,900
Rate = 6% converted to decimal form (0.06)
Time = 50 days
Principal = $11,900 / (0.06 * 50)
Principal = $11,900 / 3
Principal = $3,966.67
Therefore, the correct answer is none of these. The principal is $3,966.67.
To calculate the principal, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Given:
Interest = $11,900
Rate = 6% = 0.06 (converted to decimal)
Time = 50 days
By rearranging the formula, we can solve for the Principal:
Principal = Interest / (Rate * Time)
Substituting the given values:
Principal = $11,900 / (0.06 * 50)
Principal = $11,900 / 3
Principal = $3,966.67
Therefore, the principal is $3,966.67.
None of the answer choices provided match the correct answer.
r = (6%/360)/100% =0.000166666 = Daily %
rate expressed as a decimal.
I = Po*r*t = 11,900
Po*0.000166666*50 = 11,900
0.0083333Po = 11900
Po = $1,428,000.57 = Initial investment.