A man earn an interest rate of 240.00 in 4 years at 20% per annum as simple interest. Calculate the principal amount
To calculate the principal amount, we will use the formula for simple interest:
Simple Interest = (Principal x Rate x Time) / 100
Given that the interest earned is $240.00, rate is 20% per annum, and time is 4 years, we can substitute these values into the formula to find the principal amount:
240 = (Principal x 20 x 4) / 100
240 = (80 x Principal) / 100
Now, we can solve for the principal amount:
24000 = 80 x Principal
Principal = 24000 / 80
Principal = 300
Therefore, the principal amount is $300.