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galina1969 [7]
1 year ago
12

Holly loaned funds at 12or 30 days and earned $500 in interest. how much is the principal on this loan (use ordinary interest)?

Business
1 answer:
Mamont248 [21]1 year ago
4 0

$50,000 is the principal amount.

When you initially apply for a house loan, you borrow a certain amount of money, which is known as the principle. Simply deduct your down payment from the final selling price of your house to determine your mortgage principal.

The formula for calculating the Principal amount would be P = I / (RT) where Interest is Interest Amount, R is Rate of Interest and T is Time Period.

I = $ 500

RT= .12 X 30/360

So,

P = I/RT

P= 500/0.01

P= $50,000

Holly loaned funds at 12 or 30 days and earned $500 in interest. The principal amount on this loan is $50,000

To learn more about the Principal amount

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