SOLUTION: I am required to pay 5% on the principal ($5000)...I know that 5% = $250. But, what if I knew what 5% was and didn't know what the principal amount was? How would I calculate the

Algebra ->  Percentages: Solvers, Trainers, Word Problems and pie charts -> SOLUTION: I am required to pay 5% on the principal ($5000)...I know that 5% = $250. But, what if I knew what 5% was and didn't know what the principal amount was? How would I calculate the      Log On


   

Question 326801: I am required to pay 5% on the principal ($5000)...I know that 5% = $250. But, what if I knew what 5% was and didn't know what the principal amount was? How would I calculate the principal amount?
Answer by JBarnum(2146) About Me  (Show Source):
You can put this solution on YOUR website!
5%=.05
.05(5000)=250
so we work backwards to get amount
.05(x)=250
x=250/.05