Given:-
Simple intrest is $1240. Rate is 4.00%. Time is 2 years.
To find:-
The principal amount.
The formula which relates Simple intrest, Rate, Time and Principal amount is,
[tex]I=prt[/tex]So from this the formula for p is,
[tex]p=\frac{I}{rt}[/tex]Subsituting the known values. we get,
[tex]\begin{gathered} p=\frac{I}{rt} \\ p=\frac{1240}{0.04\times2} \\ p=\frac{1240}{0.08} \\ p=\frac{124000}{8} \end{gathered}[/tex]By simplifying the above equation. we get the value of p,
[tex]\begin{gathered} p=\frac{124000}{8} \\ p=\frac{31000}{2} \\ p=15500 \end{gathered}[/tex]So the principle amount value is 15500.
