Answer:
$ 48000
Step-by-step explanation:
To find the principal amount when given the simple interest, interest rate, and time, you can use the formula for simple interest:
[tex]\text{Simple Interest} = \text{Principal} \times \text{Rate} \times \text{Time}[/tex]
Given:
- Simple Interest (SI) = $960
- Rate (R) = 12% per annum
- Time (T) = 2 months [tex]\sf(expressed\: in \:years, T = \frac{2}{12} = \frac{1}{6})[/tex]
Let's plug these values into the formula and solve for the principal amount (P):
[tex]960 = P \times 0.12 \times \frac{1}{6}[/tex]
To solve for P, divide both sides of the equation by [tex]0.12 \times \frac{1}{6}:[/tex]
[tex]P = \dfrac{960}{0.12 \times \dfrac{1}{6}} \\\\ P = \dfrac{960}{0.02} \\\\ P = 48000[/tex]
