Dr. Sand borrowed some money to buy new furniture for his office. He paid $48.00 simple interest
On a 2-year loan at 4%. Find the principal.

Question

Quizplus · Accepted Answer

We use the formula:

Simple Interest = (Principal x Rate x Time) / 100

Plugging in the given values, we get:

$48.00 = (Principal x 4 x 2) / 100

Simplifying this equation, we get:

$48.00 = (8/100) * Principal

$48.00 * 100 / 8 = Principal

$6,00 = Principal

Therefore, the principal is $600. Option D is the correct choice. We can use the formula I = PRT, where I is the interest, P is the principal, R is the rate, and T is the time.

Substituting the given values, we get:
48 = P x 0.04 x 2
48 = 0.08P
P = 48/0.08
P = 600

Therefore, the principal is $600, so the correct answer is D.

Dr Sand Borrowed Some Money to Buy New Furniture for His