Question

How much must harry's hardware deposit at a 14.5% annual interest for 240 days in order to earn $500 in simple interest?

Answer 1

Answer:

Total deposit to earn $500 simple interest at 14.5% annual interest for 240 days is $5244.25287356

Step-by-step explaination:

Given, annual interest= 14.5%

        Time = 240 days = $\frac{240}{365}yrs$

             S.I = $500

we have to find the deposit to earn $500 simple interest at 14.5% annual interest for 240 days

∴ By simple interest formula,

$S.I = \frac{P\times R\times T}{100}$

⇒    $500 = \frac{P\times 14.5 \times \frac{240}{365} }{100}$

⇒    $P=\frac{500\times 365 \times 100}{145\times 24}=5244.25287356$

Hence, Total deposit to earn $500 simple interest at 14.5% annual interest for 240 days is $5244.25287356

Answer 2

To get the formula for the principal, we will use the formula for the interest and derived it from there:

I = Prt is the equation then it will be P = I /rt since we are looking for the principal.

 

P = I /rt

 

= $500 / (0.145 x 240/360)

 

= $500 / 0.0967

 

= $5170.63

 

To check:

I = Prt

 

= $5170.3 x 0.145 x 240/360

 

= $499.8 or $500