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kobusy [5.1K]
3 years ago
10

How much should you invest now at 7 1/4% simple annual interest in order to earn $190 interest in 4 months?

Mathematics
1 answer:
vlabodo [156]3 years ago
8 0

Answer:

so principal amount is $7862.07

Step-by-step explanation:

Given data

rate = 7*1/4 % = 29/4 %

interest = $190

time = 4 months = 4/12 year

to find out

principal

solution

we know the simple interest formula  i.e.

interest = ( principal × rate  × time ) /100             ..................1

now put all value rate time and interest in equation 1 we get interest here

interest = ( principal × rate  × time ) /100  

190 =  ( principal × 29/4  × 4/12 ) /100  

principal = 190 × 12  ×100 /   29

principal = 7862.068966

so principal amount is $7862.07

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