The principal must be deposited to earn $1,000 simple interest in 250 days at a rate of 5.05% is $28,514.85
How is simple interest determined?
The simple interest on deposit is determined as the principal multiplied by the simple interest rate and the time of the deposit as shown below:
I=PRT
I=simple interest earned=$1,000
P=principal deposited=unknown
R=simple interest rate =5.05%
T=number of days that deposit lasted as a fraction of number of days in a year=250/360
$1000=P*5.05%*250/360
$1000=P*0.0350694444444444
P=$1000/0.0350694444444444
P=$28,514.85
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