Question

You pay 3. 5% annual simple interest for 12 years on a loan and you pay $1512 in interest. How much is the principal

Answer 1

P = $1,064.79

Explanation:

the equation we will use is P = A / (1 + rt), where P=principle, A=amount payed, r=rate(interest), and t=time. first convert the rate into a decimal (0.035) and then plug in the numbers into the equation P = 1512 / ( 1 + (0.035 × 12)) = 1064.79