Question

I need a proper answer with statements and with the workings. Preferably, by Alisha260. The questions : 1) If the principal is 1000, the rate is 5% and the time is 2 years, what is the interest and amount? 2) If the time is 3 years, the rate is 6% and the interest is 200, find the principal.

Answer 1

1.Amount = Principle × ( 1 + rate × time )
            First converting rate into decimal = 5/100 = 0.05

Now 
            = 1000 × ( 1 + 0.05 × 2 )
            = 1000 × 1.1
            = 1100.

2. Principle = amount / 1 + rate × time
                 = 200 / 1 + 0.06 × 3
                 = 169.49.