Answer:
The principal amont was $35,000
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
In this problem, we have that:
[tex]E = 18375, t = 10, I = 0.0525[/tex]
We want to find P. So
[tex]E = P*I*t[/tex]
[tex]18375 = P*0.0525*10[/tex]
[tex]0.525P = 18375[/tex]
[tex]P = \frac{18375}{0.525}[/tex]
[tex]P = 35000[/tex]
The principal amont was $35,000
