Question 571377
I am in business math and for the life of me I cannot figure out how to do this problem! Please help!  Margie is buying a car.  Her June monthly interest at 12 1/2% was $195. What was Margie's principal balance at the beginning of June?  Please don't answer in Algebra, because I won't understand it.  Thank you for 
<pre>
The 12.5% is for a year. 

As a decimal that is .125

To get the percent interest for 1 month we divide the interest
rate for a year by 12

.125÷12 = .0105166667

So the balance at the first of June was multiplied by that decimal
to get the $195 interest for the month.

So to find out what was multiplied by .0105166667 to get $195,

we divide 195÷.0105166667 and get $18720

Edwin</pre>