Matty Kaminsky owns a new Volvo. His June monthly interest was $400. The rate is 8 ½ percent. Matty's principal balance at the beginning of June is: (Use 360 days)
Let Matty's principle be $P
Px 8.2%/12= 400
Then solve for P
To find Matty Kaminsky's principal balance at the beginning of June, we need to use the formula for simple interest:
Interest = Principal * Rate * Time
Given:
Interest = $400
Rate = 8 ½ percent (convert this to a decimal by dividing by 100 and then add 0.5 since ½ is half of 1 percent, so the rate becomes 0.085)
Time = 1 month
Let's denote the principal as P. To find P, we rearrange the formula:
Interest = P * Rate * Time
P = Interest / (Rate * Time)
Plugging in the values:
P = $400 / (0.085 * 1)
Simplifying the expression:
P = $400 / 0.085
Using a calculator, we find:
P ≈ 4705.88
Therefore, Matty Kaminsky's principal balance at the beginning of June is approximately $4,705.88.
To find Matty's principal balance at the beginning of June, we need to use the formula for calculating interest:
Interest = Principal Balance * Rate * Time
Here, we have the interest ($400) and the rate (8 ½ percent), but we need to find the principal balance at the beginning of June.
To calculate the principal balance, we rearrange the formula to solve for Principal Balance:
Principal Balance = Interest / (Rate * Time)
Given that the interest is $400 and the rate is 8 ½ percent, which in decimal form is 0.085, and the time is 1 month since it is for June, we can substitute these values into the formula:
Principal Balance = $400 / (0.085 * 1)
To calculate the principal balance, we divide $400 by the product of 0.085 and 1:
Principal Balance = $400 / 0.085
To perform the calculation, we divide $400 by 0.085:
Principal Balance = $4,705.88
Therefore, Matty's principal balance at the beginning of June is $4,705.88.