Jefferson Bank made a loan at 6% interest for 146 days. If the amount of interest was $36.50, use the ordinary interest method to find the amount of principal borrowed. Round to the nearest whole dollar amount
To find the principal borrowed using the ordinary interest method, we can use the formula:
Interest = Principal * Rate * Time
In this case, we are given:
Interest = $36.50
Rate = 6% = 0.06 (decimal form)
Time = 146 days
Let's substitute these values into the formula and solve for the principal:
$36.50 = Principal * 0.06 * 146
Divide both sides of the equation by (0.06 * 146):
$36.50 / (0.06 * 146) = Principal
Simplifying this:
$36.50 / 8.76 = Principal
Principal ≈ $4.16
Therefore, the amount of principal borrowed, rounded to the nearest whole dollar amount, is $4.
To find the amount of principal borrowed using the ordinary interest method, we can use the formula:
Interest = Principal x Rate x Time
First, let's convert the interest rate from a percentage to a decimal. The interest rate is 6%, so we divide it by 100:
6% / 100 = 0.06
Next, we substitute the given values into the formula:
$36.50 = Principal x 0.06 x 146
To isolate the principal, we divide both sides of the equation by (0.06 x 146):
Principal = $36.50 / (0.06 x 146)
Simplifying the right side of the equation:
Principal = $36.50 / 8.76
Principal ≈ $4.17 (rounded to two decimal places)
The principal borrowed from Jefferson Bank is approximately $4.17. However, since the question asks for the amount rounded to the nearest whole dollar amount, we round this value to the nearest whole dollar:
Principal ≈ $4
Therefore, the amount of principal borrowed from Jefferson Bank is approximately $4.
I = PRT
36.5 = P * 0.06 * 0.4
Solve for P