Question

The following information is known about a loan.

Time = 7 years
Interest rate = 6%
Interest = $840.00

What was the principal on the loan?

Answer 1

112.8

Explanation:

840/7 which is 120 then you would want to multiply by 0.94 as you are adding back!

Answer 2

principal of the loan is $2000

Explanation:

use formula of simple interest i.e. S.I. = (P×R×T)/100

Here, S.I. is Simple Interest

P is Principal

R is Rate of Interest

T is Time