ermaine’s father owes $6,300 in interest at the end of a 60-month car loan at a 7% simple annual interest rate. What was the ori

Question

3 years ago

14

ginal loan amount?

1 answer:

Aleks04 [339] · Answer 1 · 2022-03-20T17:00:12+03:00

7 0

The pertinent formula is i = p*r*t. Here, i = $6,300, r = 0.07 and t = 5 yrs.

We want to solve this for the principal, p. Since i = p*r*t, p = i / (rt). In this case, the principal was:

p = $6,300 / [0.07*5] = $6,300 / 0.35 = $18,000