2 years ago

At a rate of 4%, you paid $144.00 in interest over a two-year period. What was the original amount of your loan?

1 answer:

6 0

Principal is the same as original amount.
1. You convert the rate % to a decimal number. (divide by 100) 

2. Substitute: 

P = 144 / (.04 x 2) 

3. Solve: 

P = 144 / .08 
P = 1,800 

4. Your answer is $1,800

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