Interest earned on an account totals $100. If the interest rate is 7(1/4)%, what is the principal amount?

Interest earned on an account totals $100. If the interest rate is 7(1/4)%, what is the principal amount?

Detailed Explanation

Interest = principal × rate. Let p represent the principal. Then 100 = p *7(1/4)%, so p =100/(7 + (1/4)% = 100/0.0725 = 1.379.