Question

I = $440, P= 1, r= 5%, t = 4 years

Answer 1

We have to use the simple interest formula

$I=P(1+rt)$

Let's replace the given information

$440=P(1+0.05\cdot4)$

Then, we solve for P.

$\begin{gathered} 440=P(1+0.2) \\ 440=P(1.2) \\ P=\frac{440}{1.2}\approx366.67 \end{gathered}$

Hence, the principal is around $366.67.