Question

The bank gave a loan with a 9% simple interest rate to be paid in 3 years. If $378 was paid in interest, how much was the principal?​

Answer 1

$1400

Explanation:

First, converting R percent to r a decimal

r = R/100 = 9%/100 = 0.09 per year,

then, solving our equation

P = 378 / ( 0.09 × 3 ) = 1400

P = $ 1,400.00

The principal required to

accumulate interest of $ 378.00

on a rate of 9% per year for 3 years is $ 1,400.00.