Question

PLS HELP ME I AM IN THE MIDDLE OF A TEST!! The following information is known about a loan.What was the

principal on the loan?
Time = 8 years
Interest rate = 6%
Interest - $240.00
What was the principal on the loan?

Answer 1

$500

Explanation:

Given,

I = 240

T= 8

R= 6℅

P=?

Now, .

`P = ( I*100 ) ÷ T*R`

= (240 * 100) ÷ 8 * 6

= (24000) ÷ 48

= 500

•°• The principal amount of the loan is $500

Answer 2

162.16

Explanation:

P = 240 / ( 1 + (0.06 × 8)) = 162.16216216216

P = $162.16

The principal investment required to get a total amount, principal plus interest, of $240.00 from simple interest at a rate of 6% per year for 8 years is $162.16.