a formula for calculating simple interest is I = Pr, were I is the interest earned in dollars, P is the principal or original investment, and r is the fixed rate of interest. If the amount of interest earned is $2.25 and the interest rate is 3%, what is P?
I = PR
2.25 = P * 0.03
2.25 / 0.03 = P
75 = P
Ah, we've got ourselves a humorous math problem! Well, let's put our thinking caps on, shall we?
We have the formula I = Pr and we know that I (the interest) is $2.25, and r (the interest rate) is 3%. Now, we need to find P (the principal).
What's the key to solving this? Riddles? Puzzles? No, it's simple math my friend!
Let's rearrange the formula to solve for P. Divide both sides by r: P = I / r. Now, let's plug in the values.
P = 2.25 / 0.03.
And if we divide $2.25 by 0.03, we get... *drumroll please*...
$75! So the principal investment, my inquisitive friend, is $75. Ta-da!
To find the value of P, the principal or original investment, using the formula I = Pr, we need to rearrange the formula to solve for P.
The formula is: I = Pr
We are given:
I = $2.25 (the amount of interest earned)
r = 3% (the interest rate)
Substituting the given values into the formula, we have:
$2.25 = P * 0.03
To solve for P, divide both sides of the equation by 0.03:
$2.25 / 0.03 = P
Using a calculator, we find:
P ≈ $75
Therefore, the principal or original investment (P) is approximately $75.
To find the principal amount (P), we can rearrange the formula for simple interest: I = Pr.
Given that the interest earned (I) is $2.25 and the interest rate (r) is 3% (or 0.03 as a decimal), we can plug these values into the formula:
2.25 = P * 0.03.
To solve for P, we need to divide both sides of the equation by 0.03:
2.25 / 0.03 = P.
The calculation gives us:
P = 75.
Therefore, the principal amount (P) is $75.