Question

Aiden took out a car loan for four years. The maturity value of the loan was $24,666 and Aiden has paid $1,894 in interest. What was the principal amount of the loan?

Answer 1

The principal amount of the loan is $22,772.

Explanation:

Principal amount = Maturity value - Total interest paid

Principal amount = $24,666 - $1,894

Principal amount = $22,772

So, the principal amount of the loan was $22,772.