Question

Solve for principal Interest $60Rate 4%90 days-ordinary

Answer 1

SOLUTION

To solve this we will use the simple interest formula

$\begin{gathered} I=\frac{PRT}{100} \\ where,\text{ I = interest = \ 60} \\ R=rate=4\%=\frac{4}{100}=0.04 \\ P=principal=? \\ T=time=90\text{ days } \end{gathered}$

But we will divide by 365 days because the time is in days, which is 90 days, so we have

$\begin{gathered} I=\frac{PRT}{100\times365} \\ 60=\frac{P\times0.04\times90}{100\times365} \\ 60=\frac{3.6P}{36500} \end{gathered}$

cross multiplying we have

$\begin{gathered} 3.6P=36500\times60 \\ P=\frac{36500\times60}{3.6} \\ P=608,333.33333333 \end{gathered}$

Hence the Principal is $608,333.33