Find out the capital required to earn a monthly interest of $510 at 7% simple interest.

Question

Question

Find out the capital required to earn a monthly interest of $510 at 7% simple interest.

business economics

Answer 1

Answer #1

Simple interest(S.I) = P x R x T

Where P= Principal Amount, R = Rate of interest, T= time

so, P= S.I / P x R , Taking T=1,

= 100 x 510 / 7

= 7285.7

$ 7285.7 is the capital required to get SI of $510. The annual amount will be 7285.7 x 12(months) = $87428.4

Answer 2

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