Answer:
The principal is $6,000 when i = $14,400, r = 0.08 and t = 30 yr
Step-by-step explanation:
We are given i = prt, where p is the principal, r is the interest rate as a decimal fraction, and t is the time in years.
We first solve i = prt for p. To accomplish this, divide both sides by rt, which results in:
i p
----- = -----
rt 1
Here we substitute $14,400 for p, 0.08 for r and 30 for t.
We get the following expression for p:
$14,400
p = ----------------- = $6,000
(0.08)(30)
The principal is $6,000 when i = $14,400, r = 0.08 and t = 30 yr
