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31 January, 10:45

When money is invested at 4.5 % simple interest for 4 months, the interest is $75. Find the principal

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  1. 31 January, 11:04
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    Answer: $555.6

    Step-by-step explanation:

    Simple interest = Principal x Rate x Time

    Principal = Interest/Rate x Time

    From the question, interest = $75

    Rate = 4.5%; 4.5/100 = 0.045

    Time = 4 months

    Slot the values into the formula:

    P = 75/0.045 * 4/12

    = 75/0.135

    P = $555.6
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