Find the principal of a 15-month loan with a rate of 6.5%, if it results in interest of $812.

Maiclubk

Maiclubk

Answered question

2021-02-13

Find the principal of a 15-month loan with a rate of 6.5%, if it results in interest of $812.

Answer & Explanation

aprovard

aprovard

Skilled2021-02-14Added 94 answers

Let I be the interest, P the principal, r the interest rate (in decimals) and t the loan period (in years).
The formula would be:
I=Prt
Substitute:
812=P×0.065×1.25
P=8120.065×1.25
=8120.08125
=9993.85

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