Elementary Algebra

Published by Cengage Learning
ISBN 10: 1285194055
ISBN 13: 978-1-28519-405-9

Chapter 4 - Proportions, Percents, and Solving Inequalities - 4.2 - Percents and Problem Solving - Problem Set 4.2: 60

Answer

3000 dollars are needed as principal.

Work Step by Step

The interest formula is: I = P $\times$ r $\times$ t. To find the principal, or P, we divide I by r $\times$ t. So, P = $\frac{I}{r\ \times\ t}$ r = 5% = 0.05 t = 4 I = 600 Substitute these values in the formula to obtain: P = $\frac{600}{0.05\ \times\ 4}$ P = $\frac{600}{0.20}$ P = 3000 dollars.
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