Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can caculate the principle as?
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To calculate the principal amount, we can use the formula for simple interest:
Simple Interest = (Principal) x (Interest Rate) x (Time)
In this case, we have:
Interest = $11,900
Interest Rate = 6% (expressed as a decimal, 0.06)
Time = 50 days
Let's rearrange the formula to solve for the principal:
Principal = Interest / (Interest Rate x Time)
Plugging in the given values:
Principal = $11,900 / (0.06 x 50)
Calculating the denominator:
Principal = $11,900 / 3
Finally, solving for the principal:
Principal = $3,966.67
Therefore, the principal amount is approximately $3,966.67.