Answer:
The principal required to accumulate interest of $ 1,008.00 on a rate of 4.5% per year for 7 years is $ 3200.
Step-by-step explanation:
Given:
Interest I = $ 1008
Time period t = 7 years
Rate of Interest per year r = 4.5% = 4.5/100 = 0.045
To determine:
Initial deposit P = ?
Using the simple interest formula
I = Prt
P = I / rt
P = 1008 / ( 0.045 × 7 )
P = $ 3200
Therefore, the principal required to accumulate interest of $ 1,008.00 on a rate of 4.5% per year for 7 years is $ 3200.
