Question

Paid $2652.00 in simple interest for 8 years at 17%. What is the principal?

Answer 1

$1950

Explanation:

Formula for simple interest:

I = Prt,

where I = interest; P = principal; r = yearly interest rate; t = time in years

We know: I = $2652.00; t = 8 years; r = 17%

Plug in the values we know in the formula, and solve for P.

I = Prt

2652 = P(17%)(8)

P = 2652/(0.17 * 8)

P = 1950

Answer: $1950

Answer 2

450.84$ is the principal.