Find the principal which produces simple interest of #514.50 in 3 years 6 months at 6% per annum.
I = PRT
514.5 = P * 0.06 * 3.5
To find the principal, we can use the formula for simple interest:
Simple Interest = Principal × Rate × Time
Given:
Simple Interest = #514.50
Time = 3 years 6 months = 3.5 years
Rate = 6%
Let's plug the values into the formula and solve for the Principal:
514.50 = Principal × 0.06 × 3.5
Divide both sides of the equation by (0.06 × 3.5):
514.50 / (0.06 × 3.5) = Principal
This gives us:
Principal = #2450
Therefore, the principal that produces a simple interest of #514.50 in 3 years 6 months at a rate of 6% per annum is #2450.
To find the principal that produces a simple interest of #514.50 in 3 years and 6 months at an annual interest rate of 6%, we can use the formula for simple interest:
Simple Interest = (Principal × Rate × Time)
First, we need to convert the time of 3 years and 6 months into a single value in years. There are 12 months in a year, so 6 months is equivalent to 6/12 = 0.5 years.
Now, we can plug in the values into the formula and solve for the principal:
514.50 = (Principal × 0.06 × (3 + 0.5))
Simplifying the equation:
514.50 = (Principal × 0.06 × 3.5)
514.50 = (Principal × 0.21)
Next, we can solve for the principal by rearranging the equation:
Principal = 514.50 / 0.21
Principal ≈ #2,450
Therefore, the principal that produces a simple interest of #514.50 in 3 years and 6 months at a 6% annual interest rate is approximately #2,450.