If the simple interest on a sum of money at 3% per annum for 2½ years is $123,find the principal?

1 Answer
Jim G.
Aug 5, 2018

#$1640#

Explanation:

#"Simple interest I is calculated as"#

#•color(white)(x)I=PRT#

#"where P is the principal, R is the interest rate and T is"#
#"time in years"#

#"note that "R=3%=3/100=0.03#

#"divide both sides by RT"#

#(Pcancel(RT))/cancel(RT)=I/(RT)#

#P=($123)/(0.03xx2.5)=$1640#

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