Question

In 25 years, a bond that paid 4.75% simple interest earned $4,750 interest. What was the principal of the bond in dollars?

Answer 1

Answer:

$ 4000

Step-by-step explanation:

Given,

Rate ( R ) = 4.75 %

Time ( T ) = 25 years

Simple Interest ( I ) = $ 4,750

Principal ( P ) = ?

Finding the principal

We know that,

$\boxed{ \sf{principal = \frac{interest \: \times 100}{ \: time \: \times \: rate} }}$

plug the values

⇒$\sf{ \frac{4750 \times 100}{4.75 \times 25} }$

Calculate

⇒$\sf{\frac{475000}{118.75} }$

⇒$ $\sf{4000}$

Hope I helped!

Best regards!!