Answer:
P = $ 2,000.00
Equation:
P = I / rt
Calculation:
First, converting R percent to r a decimal
r = R/100 = 4%/100 = 0.04 per year,
putting time into years for simplicity,
3 months ÷ 12 months/year = 0.25 years,
then, solving our equation
P = 20 / ( 0.04 × 0.25 ) = 2000
P = $ 2,000.00
The principal required to
accumulate interest of $ 20.00
on a rate of 4% per year for 0.25 years (3 months) is $ 2,000.00.
