a formula for calculating simple interest is I = Pr, were I is the interest earned in dollars, P is the principal or original investment, and r is the fixed rate of interest. If the amount of interest earned is $2.25 and the interest rate is 3%, what is P?

1 answer

I = PR

2.25 = P * 0.03

2.25 / 0.03 = P

75 = P