Answer:
The principle amount = P = $ 2334.92
Step-by-step explanation:
Given
Interest amount I = Rs 367.75
Time period t = 4½ = 9/2 = 4.5 years
Interest rate r = 3½ % = 7/2% = 3.5% = 0.035
To determine
Principal P = ?
Using the simple interest formula
I = Prt
where
I = Interest amount
r = Interest rate
t = time in years
substituting I = Rs 367.75, t = 4.5 years, r = 0.035 in the equation
I = Prt
P = I / rt
= [367.75] / [(0.035)(4.5)]
P = $ 2334.92
Therefore, the principle amount = P = $ 2334.92
