Question

I = $440, P= 1, r= 5%, t = 4 years

Answer 1

We have to use the simple interest formula

`I=P(1+rt)`

Let's replace the given information

`440=P(1+0.05\cdot4)`

Then, we solve for P.

`\begin{gathered} 440=P(1+0.2) \\ 440=P(1.2) \\ P=(440)/(1.2)\approx366.67 \end{gathered}`

Hence, the principal is around $366.67.