9) a simple interest account earns $75 at a rate of 1.5% over the course of 5 years. what was the principal…

9) a simple interest account earns $75 at a rate of 1.5% over the course of 5 years. what was the principal amount on the account?

9) a simple interest account earns $75 at a rate of 1.5% over the course of 5 years. what was the principal amount on the account?

Answer

Explanation:

Step1: Recall 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 need to solve for $P$.

Step2: Convert the interest rate to decimal

Given $r = 1.5%=0.015$, $I = 75$, and $t = 5$.

Step3: Rearrange the formula to solve for $P$

From $I = Prt$, we can solve for $P$ by the formula $P=\frac{I}{rt}$.

Step4: Substitute the values into the formula

$P=\frac{75}{0.015\times5}=\frac{75}{0.075}=1000$.

Answer:

$1000$