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3 years ago

Mr. Carr paid $64 interest for a two-year loan at 8% simple interest

Mathematics

1 answer:

Alenkasestr [34]3 years ago

3 0

Answer:

$400

Step-by-step explanation:

The formula for simple interest is i = p * r * t, where r is the annual interest rate as a decimal fraction, p is the principal and t is the time in years.

Here we want to determine what the principal was. Solving the above equation for p, we get:

i $64

p = --------- = -------------- = $400

r * t (0.08)(2)

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