Question

If you take out a loan that costs $561 60 over eight years at an interest rate of 9% how much was the loan for?

Answer 1

The loan was $28184.81

Explanation:

Let the loan amount be x

Rate of interest on Loan = 9%

Time = 8 years

Amount of loan over 8 years = $56160

Formula :
`A=P(1+r)^t`

Where A = Amount =56160

P = Principal = x

r = rate of interest = 9% = 0.09

t = time = 8 years

Substitute the values in the formula :

So,
`56160=x(1+0.09)^8`

`(56160)/((1+0.09)^8)=x`

$28184.81=x

Hence The loan was $28184.81