Question

Angela purchased a car using a simple interest loan. The loan had an interest rate of 5% and was for three years. Angela paid $450 in interest. The principal amount of the loan was for $

Answer 1

$3000

Explanation:

Given data

Rate=5%

Time=3 years

Simple interest= $450

We know that the expression for simple interest is

SI=PRT/100

Substitute

450=P*5*3/100

cross multiply

P*15= 45000

Divide both sides by 15

P= 45000/15

P=$3000

Hence the principal amount is $3000