Find the principal of a 15-month loan with a rate of 6.5%, if it results in interest of $812.

Find the principal of a 15-month loan with a rate of 6.5%, if it results in interest of $812.

Question
Analysis
asked 2021-02-13
Find the principal of a 15-month loan with a rate of 6.5%, if it results in interest of $812.

Answers (1)

2021-02-14
Let I be the interest, P the principal, r the interest rate (in decimals) and t the loan period (in years).
The formula would be:
\(\displaystyle{I}={P}{r}{t}\)
Substitute:
\(\displaystyle{812}={P}\times{0.065}\times{1.25}\)
\(\displaystyle{P}=\frac{{812}}{{{0.065}\times{1.25}}}\)
\(\displaystyle=\frac{{812}}{{0.08125}}\)
=9993.85
0

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