Account (A) is a saving account , the interest earned after 1 year is $12 .If the interest rate is 3.2% for account (A). How much is the principle for account (A) ?3​

Answer:

The principal for the account is $375.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

[tex]E = P*I*t[/tex]

In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

The interest earned after 1 year is $12 .If the interest rate is 3.2% for account (A).

This means, respectively, that [tex]t = 1, E = 12, I = 0.032[/tex]

We want to find P.

[tex]E = P*I*t[/tex]

[tex]12 = P*0.032*1[/tex]

[tex]P = \frac{12}{0.032}[/tex]

[tex]P = 375[/tex]

The principal for the account is $375.

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