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tankabanditka [31]
3 years ago
11

Logan Chivery owns her own car. Her june monthly interest was $300. The rate is 8 1/2 percent. Logans principal balance at the b

eginning of June is $42,335.14.
Mathematics
1 answer:
tekilochka [14]3 years ago
8 0

Logan Chivery owns her own car. Her June monthly interest was $300. The rate is 8.5 percent. Logan's principal balance at the beginning of June is: (Use 360 days-do not round the denominator.)

A. $42,353.14

B. $42,335.14

C. $2,335.14

Answer: A. $42,353.14

Step-by-step explanation:

When taking a loan, we have to pay interest. The Simple Interest Formula is:

Simple Interest (I) = Principal (P) × Interest Rate (r)

Principal (P) is the borrowed amount.

Interest Rate (r) is the percent of the principal to be paid.

Time (t) is the length of time that money is borrowed.

If Logan Chivery has the monthly interest of $300  at a rate of 8.5% per year, first, we have to convert the year rate to the month of June rate.

30 days = 8.5÷360÷30 = 0.7083333333 interest rate

Then, find the Principal by using the formula

Simple Interest (I) = Principal (P) × Interest Rate (r)

4,2352.94×0.7083333333÷100=299.99

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