SOLUTION: Matty Kaminsky owns a new Volvo. His June monthly interest was $400. The rate is 8 ½ percent. Matty's principal balance at the beginning of June is: (Use 360 days) (Points : 1)

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Matty Kaminsky owns a new Volvo. His June monthly interest was $400. The rate is 8 ½ percent. Matty's principal balance at the beginning of June is: (Use 360 days) (Points : 1)       Log On

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Question 729739: Matty Kaminsky owns a new Volvo. His June monthly interest was $400. The rate is 8 ½ percent. Matty's principal balance at the beginning of June is: (Use 360 days) (Points : 1)
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
I = Prt

400 = P*(0.085)*(30/360) ... Note: there are 30 days in june

400 = P*(0.085)*(0.08333333333333)

400 = P*0.00708333333333

400/0.00708333333333 = P

56470.5882353207 = P

P = 56470.5882353207

P = 56470.59

This is the principal balance at the beginning of June