Question

if you take out a loan that cost $561.60 over 8 years at an interest rate of 9% how much was the loan for?

Answer 1

Answer: $780

Step-by-step explanation:

From the question,

Principal= Unknown

Rate= 9%

Time= 8 years

Interest= $561.60

Since Interest= PRT/100

where P= Principal

R = Rate

T = Time

561.6 = (P × 9 × 8)/100

561.60 = 72P/100

Cross multiply

561.60 × 100 = 72P

56160 = 72P

Divide both side by 72

56160/72 = 72P/72

P = 780

The principal is $780.