Question

A bank gives you a simple interest loan at a rate of 5.5%. after 3 years, you have paid 41.91 in interest. what was the original principal amount of your loan?

Answer 1

Simple interest equation:

B = P + Prt

where Prt is the Interest part.

Prt = 41.91, r = .055, t =3

0.175P = 41.91

P = 239.49