Homework Answers
Correct Answer:
You hand him $ 465
Working:
Amount = $ 500
Rate = 130% Annually
Time = 3 weeks
Since there are 52 weeks in one year therefore T = 3/52 = 0.0577 year
Let the Principle be = $ Z
Formula for simple interest = Amount – Principle = Principle * Rate * Time
Putting the relevant value in the formula:
500 - $ Z = $ Z * 130% * 0.0577
500 – $ Z = 0.075 Z
500 = $ Z + 0.075 Z
500 = 1.075 Z
$ Z = 500 / 1.075
Z (Principle) = $ 465.12
End of Answer.
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