Find the principal. Round to the nearest cent.
-Rate: 8%
Time: 80 days
Interest: $1,564.26
A)$88,039.63
B)$87,989.63
C)$8,798.96
D)$80

Question

Quizplus · Accepted Answer

We can use the formula: Interest = (Principal x Rate x Time) / 36500
Plugging in the given values, we get:
1,564.26 = (Principal x 0.08 x 80) / 36500
Solving for Principal, we get:
Principal = 87,989.63 (rounded to the nearest cent) 
Therefore, the answer is B. Using the simple interest formula: 
I = PRT 
where I is the interest earned, P is the principal, R is the rate, and T is the time.

Plugging in the given values: 
$1,564.26 = P(0.08)(\frac{80}{365}) 
Solving for P gives: 
P = $87,989.63

Therefore, the principal is $87,989.63 rounded to the nearest cent, which is answer choice B.

Find the Principal. Round to the Nearest Cent