Question

17. Jun is investing an amount at 15% simple interest for 3 years. If he intends to have P48 200.00 at the end of the term, what must be his principal?​

Answer 1

Answer:

• Principal must be P33241.38

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Simple interest formula

• A = P(1 + rt), A- future amount, P- principal, r- rate, t - time

Given

• A = P48200,
• r = 15% = 0.15
• t = 3 years

Find P

• 48200 = P(1 + 0.15*3)
• 48200 = P*1.45
• P = 48200/1.45
• P = 33241.38