Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:
A) $1,428,005.70
B) $4,128,005.70
C) $1,428,05.70
D) $1,420.70
E) None of these

Question

Quizplus · Accepted Answer

We can use the simple interest formula:

I = P * r * t

where I is the interest, P is the principal, r is the interest rate, and t is the time in years (decimal form).

First, we need to convert 50 days to years:

50 days * (1 year / 365 days) = 0.1369 years

Now, we can plug in the values given:

$11,900 = P * 0.06 * 0.1369

Solving for P:

P = $1,428,05.70

Therefore, the correct answer is C.

Given Interest of $11,900 at 6% for 50 Days (Ordinary