how do u do this Q HELP (1 Viewer)

[**blu_rose**]

i have my half yearlies 2morrow for maths and there's this question in the excel book which i dont get (pg 57)

geoff wants to earn $1500 a year in interest how much must he lend to michael at an interest rate of 10% pa?

ive tried it and im always one unit off.

plz help

 

[brassedoff]

*Is doing 3U* so kick me if I'm wrong.

I = P/R I believe, so

1500=P/10

10.1500=P

15000=P

R is the rate of interest as a percentage
P is the 'principle' amount you want to start with
and I is interest

As long as its not compound interest, which I can't recall immediately...

 

[**blu_rose**]

thankyou!
im gettin it now and yes it is simple interest