2. how much principal does tate need in order to earn $120 over 2 years at 3.5%?

Explanation:

Step1: Recall the simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. We are given that $I=$120$, $t = 2$ years, and $r=0.035$ (since $3.5%=3.5\div100 = 0.035$). We need to solve for $P$. From $I = Prt$, we can isolate $P$ by the formula $P=\frac{I}{rt}$.

Step2: Substitute the values into the formula

Substitute $I = 120$, $r=0.035$, and $t = 2$ into the formula $P=\frac{I}{rt}$. $P=\frac{120}{0.035\times2}$. First, calculate the denominator: $0.035\times2=0.07$. Then, $P=\frac{120}{0.07}\approx1714.29$.

Answer:

The principal Tate needs is approximately $$1714.29$.