Question

The following information is known about a loan. time = 7 years interest rate = 6% interest = $840.00 what was the principal on the loan?

Answer 1

P=i/rt
P=840/7*0.06=2,000

Answer 2

Answer:

The principal on the was $2000.

Step-by-step explanation:

We know that,

$i=\dfrac{P\cdot r\cdot t}{100}$

where,

i = interest,

P = principal,

r = rate of interest,

t = time.

Putting the given values,

$\Rightarrow 840=\dfrac{P\cdot 6\cdot 7}{100}$

$\Rightarrow P=\dfrac{840\cdot 100}{6\cdot 7}=\dfrac{84000}{42}=\ 2000$

Therefore, the principal on the was $2000.