Answer:
$56,470.59
Explanation:
We need to calculate the principal amount at the beginning of June
Data:
Interest (I) = $400
Rate(r) = 8.5%
Time(t) = 360 days
Solution:
We can calculate the principal amount by rearranging the Interest calculation formula
Formula: I = Prt
Note; Where P in the formula is the principal amount
Now rearrange the formula in order to find principal
P = I/rt
P = $400/(0.085)x(30/360)
P = $400/(0.085)x(0.08333333333333)
P = $400/(0.00708333333333
P = $56,470.59
Note: we only need to find the principal balance of June so we will consider only 30 days of June out of 360 days.
