Question

At simple interest:Find the principal rounded to the nearest cent given:Rate: 10%Time (in days): 80Interest: $112

Answer 1

Answer:

$5,110

Explanation:

The simple interest on a principal, P is found using the formula:

$SI=\frac{Prin\text{cipal}\times Rate\times Time}{100}\text{ where Time is in years.}$

Given:

• Rate: 10%

,

• Time (in days): 80 = 80/365 years

,

• Interest: $112

Substitute these values into the formula:

$\begin{gathered} 112=\frac{P\times10\times\frac{80}{365}}{100} \\ \implies P\times10\times\frac{80}{365}=112\times100 \\ P=\frac{112\times100}{10\times\frac{80}{365}} \\ P=\ 5,110 \end{gathered}$

The principal is $5,110.