Question

Jimmy takes gets a student loan to go to college after high school. If he pays $9,000 in interest at a rate of 3% for 4 years, what is the principal amount borrowed?

Answer 1

Answer:Principal=$7,500,000

Explanation:

Interest =(Principal X Rate X time ) / 100

Given

Interest =$9,000

rate = 3%

Time= 4 years

Principal=(Interest X 100) / rate X time

Principal,=(9000x 100)/3% x 4

Principal=$7,500,000