Answer:
The principal of the investment is $ 500
Step-by-step explanation:
1. Let's review the information given to us to answer the question correctly:
Interests = $ 60
Interest rate = 12% annually = 0.12
Time = 1 year
2. Find the principal.
Let's use the formula given:
Interests = Principal * interest rate * time
Replacing with the real values, we have:
60 = Principal * 0.12 * 1
0.12 * Principal = 60
Principal = 60/0.12
Principal = 500
