How would I figure this equation?
Interest= principal x rate x time
I already know time is 50/365 = 14
I just dont know how to do the equation

Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as:

Question

How would I figure this equation?
Interest= principal x rate x time 
I already know time is 50/365 = 14 
I just dont know how to do the equation 


Given interest of $11,900 at 6 percent for 50 days (ordinary interest), one can calculate the principal as:

terenzreignz · Answer

Given what we know:
11900 = principal x 0.06 x (50/365)
11900 = principal x 0.00821917...
And since we know that, we divide this number by the interest and we get
11900/0.00821917... = principal
principal = 1447833.3333...

shane_b · Answer

So that it's more clear:$$$11,900=Prt=P(0.06)(\frac{50}{365})$$$$P=\frac{$11,900}{(0.06)(\frac{50}{365})}$$

anonymous · Answer

my text is using 360 as the year amount. Doesn't that seem strange?

shane_b · Answer

a bit...but whatever they want you to use :)

anonymous · Answer

well these are my options to choose from : 1. $188.22
2. $187.18
3. $189.78
4. $187.17
5. None of these

anonymous · Answer

and i keep coming up with something all together different.

anonymous · Answer

yeah, scratch the 365, Im just going to follow the text and use their suggestion of 360 days as a year. IDK why but it makes a difference in the total

terenzreignz · Answer

This takes more algebra, but it's doable
Instead of I = Prt, we let I = 11900 - P
11900 - P = Prt, 
P = 11900/(rt + 1)

anonymous · Answer

ok and I get 1428000.00000

shane_b · Answer

Either I'm confused or those answers just don't make sense.  They are all < $200 so they cannot be the principal amount if the interest was 11,900.  Are you sure you copied the question down correctly?

shane_b · Answer

I'd like to use THAT bank...

anonymous · Answer

yeah, sorry disregard those answers I was working on another problem, my bad

shane_b · Answer

whew :)

anonymous · Answer

haha thats funny, tell me when you find it!

shane_b · Answer

Well, if $11,900 is only the interest, then you should simple end up with the equation I posted initially.  If $11,900 includes the principal then @terenzreignz looks correct.

shane_b · Answer

Using 360 days of course...which is still odd.

anonymous · Answer

i know :/

shane_b · Answer

$1.428M is what I get.

anonymous · Answer

thats what I got too! Thanks so much for the help.. I just wasnt sure how to do the equation.

shane_b · Answer

no worries...good luck!