We need to use the formula for simple interest:
I = P * R * T
where I is the interest, P is the principal (or amount of money borrowed/invested), R is the annual interest rate as a decimal, and T is the time in years.
We know I and R, and we are given T, so we can solve for P:
I = P * R * T
452 = P * 0.031 * 2
452 = 0.062P
P = 452 / 0.062
P = 7,290.32
Therefore, the principal ( or amount of money borrowed/invested) is $7,290.32.
I=$452 R=3.1% T=2 years Find p
1 answer