Question

If you take out a loan that costs $321.62 over eight years at an interest rate of 2%, how much was the loan for

Answer 1

the amount of the loan is $2,010.13

Step-by-step explanation:

The computation of the amount of the loan is shown below:

As we know that

Simple interest = Principal × rate × time period

$321.62 = Principal × 2% × 8

$321.62 = Principal × 16%

SO, the principal is

= $321.62 ÷ 16%

= $2,010.13

Hence, the amount of the loan is $2,010.13

The above formula should be applied for the same