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. </span>
