Problema Solution
suppose your friend has earned $5.51 in interest after nine months.if the annual interest rate is 3% how much is a principal in the account? Round to The nearest dollar
Answer provided by our tutors
let
P = the principal
r = 0.03 or 3% is the annual rate
I = $5.51 the interest earned
t = 9 months = 9/12 years = 3/4 years = 0.75 years
I = P*r*t
P = I/(r*t)
P = 5.51/(0.03*0.75)
P = $245 rounded to the nearest dollar
the principal is $245 rounded to the nearest dollar.