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The following information is known about a loan. time = 7 years interest rate = 6% interest = $840.00 what was the principal on the loan?

2 Answers

6 votes
P=i/rt
P=840/7*0.06=2,000
User Buley
by
7.3k points
2 votes

Answer:

The principal on the was $2000.

Explanation:

We know that,


i=(P\cdot r\cdot t)/(100)

where,

i = interest,

P = principal,

r = rate of interest,

t = time.

Putting the given values,


\Rightarrow 840=(P\cdot 6\cdot 7)/(100)


\Rightarrow P=(840\cdot 100)/(6\cdot 7)=(84000)/(42)=\$2000

Therefore, the principal on the was $2000.

User David Dao
by
8.1k points

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