The following information is known about a loan. time = 7 years interest rate = 6% interest = $840.00 what was the principal on the loan?

Question

asked Dec 16, 2018 187k views

2 Answers

David Dao · Answer 1 · 2018-12-20T00:36:03+0000

Answer:

The principal on the was $2000.

Explanation:

We know that,

$i=(P\cdot r\cdot t)/(100)$

where,

i = interest,

P = principal,

r = rate of interest,

t = time.

Putting the given values,

$\Rightarrow 840=(P\cdot 6\cdot 7)/(100)$

$\Rightarrow P=(840\cdot 100)/(6\cdot 7)=(84000)/(42)=\$2000$

Therefore, the principal on the was $2000.