SOLUTION: Business and finance. Use the simple interest formula to find the principal if the total interest earned we $150 and the rate of interest was 4% for 2 years.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Business and finance. Use the simple interest formula to find the principal if the total interest earned we $150 and the rate of interest was 4% for 2 years.       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


   



Question 85372: Business and finance. Use the simple interest formula to find the principal if the total interest earned we $150 and the rate of interest was 4% for 2 years.
Answer by scianci(186) About Me  (Show Source):
You can put this solution on YOUR website!
I = prt
150 = P(.04)(2)
150 = .08P
P = 150/.08 = $1,875