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28 January, 00:32

What could be the Principal Amount, if rate if interest is 16% and $18 is earned as an interest after 3 months

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  1. 28 January, 00:46
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    The principal amount is $37.5

    Step-by-step explanation:

    Rate of interest = 16%

    Rate of Interest = $18

    Time = 3 months

    Interest = (principal amount x rate of interest x time) / 100

    18 = (p x 16 x 3) / 100

    1800 = 48p

    P = 1800/48

    P = 37.5

    The principal amount is $37.5
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