Find the
principal (original) amount if $675
"ordinary" interest accrues after 6 months.
Depending on
your definition of "ordinary" interest as being
simple interest:
P = ? (the unknown)
rate ( ) = 0.09
(or
) /
time period ( )= 6 months which is 0.5 of a
year
/
interest accrued ( ) = $675
We know that
r times t
Substitute
what you know into the formula:
$675 =
times 0.5
Now solve for
P times 0.045
There is
another
definition of "ordinary" interest being based on a 30-day month (=
360 days in a
year), in which case a standard 6 months (ie of 365 days)
becomes 0.50694 of a year of 360 days
instead of 0.5 of a standard year.
Answer based on a standard calculation of
simple interest
=
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