Question

Time = 7 years interest rate = 6% interest = $840.00 what was the principal on the loan? $200.00 $352.80 $1,862.50 $2,000.00

Answer 1

I=840÷(7×0.06)
I=2,000

Answer 2

Option D is the correct answer.

Explanation:

We have equation

Simple interest = P x i x n

Here we have interest = $840.00 after 7 years.

n = 7

Interest rate, i = 6% = 0.06

Interest = 840 $

Substituting

840 = P x 0.06 x 7

P = 2000$

Option D is the correct answer.