Question

If the interest rate is 1.5% the time is 2 years and the interest earned is $6 what is the principle?

Answer 1

If we are talking about simple interest (and not compound interest), then

i = P*r*t

6 = P*0.015*2

6 = P*0.03

0.03P = 6

P = 6/0.03

P = 200

The principal is $200.

This means that if you deposit/invest $200 at an annual interest rate of 1.5% for 2 years, then you'll earn $6 in simple interest.

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note: 1.5% = 1.5/100 = 0.015