Question

Calculate the principal amount which earns $500 simple interest over 3 Years at a rate of 8% p.a round to the nearest cent

Answer 1

$500 was earned over 3 years
so, to find one year
500 ÷ 3 = $166.67

Interest for one year is $166.67
Interest rate for one year is 8%

8% = 166.67
1% = $20.83
100% = $2083.33

Principal amount is $2083.33