Answer:
$96,612
Explanation:
We assume the loan was paid with a single payment, so the future value formula can be used to find the principal. For interest rate r, compounded n times per year for t years, the future value of principal P is ...
FV = P(1 +r/n)^(n·t)
Filling in the given numbers and solving for P, we have ...
$175,000 = P(1 +.04/2)^(2·15) = 1.811362P
P = $175,000/1.811362 = $96,612
The principal of the loan was $96,612.