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In 12 years, a bond that paid 6.35% interest earned $7,620 interest. What was the principal of the bond?

Short Answer

Expert verified

The principal amount is $9527.5.

Step by step solution

01

Step 1. Given information 

S.I=$7620TimePeriod=12yearsRateofinterest=6.35%

02

Step 2. Calculation

P=3294T=5R=2.6%Therefore,SI=P×R×T1006.35×12×x100=7620=$9527.5

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