Answer:
P = $900
Step-by-step explanation:
Simple Interest Formula: [tex]A = P(1+rt)[/tex]
Where A is the final amount,
P = Principal
r = Interest Rate in Percent or [tex]\frac{r}{100}[/tex] per annum
t = time in years
From the information given in the question,
A = $918
r = 2% per annum or [tex]\frac{2}{100}[/tex]
t = 1 year
Lets substitute these values to find P, the principal.
[tex]P(1+(\frac{2}{100} )(1))=918\\P(1+0.02)=918\\1.02P=918\\P = \frac{918}{1.02} \\=$900[/tex]
Therefore, P = $900
