formula:interes=principle x rate x years

Question

I am trying to solve a problem and would like your help,, formula: I=prt, interest=$360,rate=6%,time=3years, principal= _??

Answer 1

Hi Jonathan,

 

So, using the formula I=Prt, where

Interest = I = 360

Principal = P = what we are looking for

Rate = r = 6 % = .06

Time = t = 3

 

First step, rearrange the equation so that you are solving for P(Principal), divide by "rt" on both sides

I_= Prt,  rt cancels on the right hand side of equation

rt     rt

 

I_ = P    OR  P = I_

rt                       rt

 

Plug the values in for each indicated letter(variable)

P = _I = __$360_ = $360 = $2,000

       rt    (.06)(3)        .18

Principal = P = $2,000.

 

Happy to help, feel free to rate me,

Shannon