In 12 years, a bond with a 6.35% annual rate earned $7620 as simple interest. What was the principle amount of the bond
Mathematics · College · Thu Feb 04 2021
llm
Answered on
Formula Used : I = PRT/100
Given; Simple interest, I= 7620
Rate, R= 6.25
Time, T=12
Principal, P =?
Making P the subject of formula;
P=( I×100)/RT
P= (7620*100)/6.25*12
P= 762000/75
P= 10160
Therefore, the principal amount is $10160.