Find the Principal in Simple Interest

Formula:
P = I / rt
where: P = principal, r = interest rate, I =simple interest, t = time period (in years)

Learn how to find the principal in simple interest with the following examples:

Question 1:
Calculate the principal that will earn $1,575 simple interest in 6 years at 7.5 percent per year.
Solution:
P = I / rt = 2300 / (0.075 * 6) = 1,575 / 0.45 = $3,500

Question 2:
A businessman borrowed an amount for 12 years at a rate of 3% per annum. The simple interest paid was $21,600. What was the amount borrowed?
Solution:
P = I / rt = 21,600 / (0.03 * 12) = 21,600 / 0.36 = $60,000
Thus, the amount borrowed (or principal) was $60,000.

* Next: How to Find Time in Simple Interest

Biggest Banks in Emerging Markets

Industrial & Commercial Bank of China is rated No. 1 in the Global Finance fourth annual ranking of the 50 Biggest Banks in Emerging Markets, as measured by total assets. China Construction Bank Corporation is the 2nd biggest bank in Emerging Markets, followed by Bank of China (3rd) and Agricultural Bank of China (4th).

Industrial and Commercial Bank of China Limited ("ICBC") is one China's 'Big Four' state-owned commercial banks. It has received top rankings and numerous awards. In 2009, ICBC received a total of 146 awards including "Bank of the Year (Asia)", "Bank of the Year (China)", "Most Respectable Enterprises in China" presented by leading publications and intermediary organizations in the world as Global Finance, Finance Asia, Asian Banker, The Asset, Asiamoney and League of American Communications Professionals.

China Construction Bank is a leading commercial bank in China offering a comprehensive range of commercial banking products and services. It has achieved top rankings and ratings such as the follows:
- Ranked 1st among the Chinese Banks in the Asian Sustainable Development Banks 2009.
- Ranked 9th in the “Top 500 Global Financial Brands” (The Banker).
- Ranked 3rd in the “Asian Bank Competitiveness Rankings”.
- Ranked 13th among the “FT Global 500” (Financial Times).

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