Question

The simple interest paid on a loan after 4 months is $300. The annual interest rate was 8%. Find the principal. (Round to nearest dollar)

Answer 1

Answer:

I = 300

T = 4

r = 8

I = PTr/100

300 = P x 4 x8/100

30000 = P x 32/

p = 30000/32

P = 937.5