1. **Problem:** What principal amount will earn 2400 in 4 years at a 6% interest rate annually? 2. **Formula:** Simple Interest (SI) is calculated as $$SI = P \times r \times t$$ where: - $P$ is the principal amount - $r$ is the annual interest rate (in decimal) - $t$ is the time in years 3. **Given:** - $SI = 2400$ - $r = 6\% = 0.06$ - $t = 4$ years 4. **Find:** Principal $P$ 5. **Calculation:** $$2400 = P \times 0.06 \times 4$$ $$2400 = P \times 0.24$$ $$P = \frac{2400}{0.24} = 10000$$ 6. **Answer:** The principal amount is 10000.