Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as: (Points : 1)

Question

Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as: (Points : 1)  
       $1,428,005.70
       $4,128,005.70
       $1,428,05.70
       $1,420.70
       None of these

Henry · Answer

r = (6%/360)/100% =0.000166666 = Daily % rate expressed as a decimal. I = Po*r*t = 11,900 Po*0.000166666*50 = 11,900 0.0083333Po = 11900 Po = $1,428,000.57 = Initial investment.