For simple interest accounts the interest earned or due depends on the principal p, interest rate r, and the time t in years according to the formula I = prt. Find p given I = $50.14, r = 10.5%, and t = 6 months. Round your answer to the nearest dollar.
A) $955
B) $960
C) $965
D) $970

Question

Quizplus · Accepted Answer

The interest earned is I = $50.14, the interest rate is r = 10.5%, and the time is t = 6 months = 0.5 years. The principal is p = I/rt = $50.14/(0.105 x 0.5) = $960. Rounding to the nearest dollar gives $960.

For Simple Interest Accounts the Interest Earned or Due Depends