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
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 = [tex]\frac{240}{365}yrs[/tex]
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,
[tex]S.I = \frac{P\times R\times T}{100}[/tex]
⇒ [tex]500 = \frac{P\times 14.5 \times \frac{240}{365} }{100}[/tex]
⇒ [tex]P=\frac{500\times 365 \times 100}{145\times 24}=5244.25287356[/tex]
Hence, Total deposit to earn $500 simple interest at 14.5% annual interest for 240 days is $5244.25287356
