ANSWER
[tex]\$5,955.26[/tex]EXPLANATION
To find the principal, we have to apply the formula for simple interest:
[tex]I=\frac{P\cdot R\cdot T}{100}[/tex]where I = interest, P = principal, R = rate, T = time (in years)
We have to solve for P:
[tex]\begin{gathered} 186=\frac{P\cdot9.5\cdot\frac{120}{365}}{100} \\ \Rightarrow186=\frac{P\cdot9.5\cdot120}{365\cdot100} \end{gathered}[/tex]Solving for P, we have:
[tex]\begin{gathered} P=\frac{186\cdot365\cdot100}{9.5\cdot120} \\ P=\frac{6789000}{1140} \\ P=\$5,955.26 \end{gathered}[/tex]That is the principal.
