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

Question

Business

Ezekiel Robbins

13 January, 20:22

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

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Answers (1)

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Ulises Frye · Answer 1

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