# SOLUTION: Use the simple interest formula to find the principal if the total interest earned was \$150 and the rate of interest was 4% for 2 years. Dollars=P Interest=I Rate of interest

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 Question 66898: Use the simple interest formula to find the principal if the total interest earned was \$150 and the rate of interest was 4% for 2 years. Dollars=P Interest=I Rate of interest=r Time calculated in years=t. Simple interest formula is I=Prt. Keeping this forumla in mind and the information provided it would seem that 150=P x 0.04 x 2, next step looks like 150=P x 0.08, to get P we will divide 150 by 0.08. This works out to be 1875. So the principal is \$1875. did i do this right?Answer by ankor@dixie-net.com(15667)   (Show Source): You can put this solution on YOUR website!Use the simple interest formula to find the principal if the total interest earned was \$150 and the rate of interest was 4% for 2 years. Dollars=P Interest=I Rate of interest=r Time calculated in years=t. Simple interest formula is I=Prt. : Keeping this formula in mind and the information provided it would seem that 150=P x 0.04 x 2, next step looks like 150=P x 0.08, to get P we will divide 150 by 0.08. This works out to be 1875. So the principal is \$1875. did i do this right? : Yes you did, and keep in mind that you can check your solution in the original eq: I = 1875 * .04 * 2 I = 150 the given interest