Given interest of $11,900 at 6% for 50 days (ordinary interest), one can calculate the principal as:
A)$1,428,005.70
B)$4,128,005.70
C)$1,428,000.00
D)$1,420.70
E)None of these

Question

Quizplus · Accepted Answer

We can use the formula for ordinary interest:

I = PRT

where I is the interest, P is the principal, R is the rate, and T is the time in years.

First, we need to convert the time from days to years:

50 days = 50/365 years ≈ 0.137 years

Now we can plug in the values we know:

11,900 = P(0.06)(0.137)

Simplifying:

11,900 = 0.000822P

P = 11,900/0.000822

P ≈ 14,280,000/10

P ≈ 1,428,000

Therefore, the principal is $1,428,000. Choice C is the correct answer.

Given Interest of $11,900 at 6% for 50 Days (Ordinary