word problem help

Question

Karl invested his savings in a short-term fund that was offering a simple interest rate of 4% p.a. The maturity value of the investment at the end of 290 days was $32,160.67

 

A). Calculate the principal amount invested 

 

B). Calculate the interest earned during the period.

Answer 1

P + P *.04 * 290/360 = 32,160.67

P + P * .032222 = 32,160.67

P*1.032222 = 32,160.67

P = 32,160.67 / 1.032222

P = 31,156.73