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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