From the information available, we have the following;
Rate = 4% (0.04)
Time = 0.5 (half a year/6 months)
Interest = 500
Principal = ???
Therefore, we would substitute these into the simple interest formula as shown below;
[tex]\begin{gathered} I=P\times R\times T \\ \text{Make P the ubject of the equation;} \\ \text{Divide both sides by R x T and you'll have;} \\ \frac{I}{R\times T}=\frac{P\times R\times T}{R\times T} \\ \frac{I}{R\times T}=P \\ \frac{500}{0.04\times0.5}=P \\ \frac{500}{0.02}=P \\ P=25000 \end{gathered}[/tex]ANSWER:
The principal to be invested therefore is $25,000
