A loan is paid off in 30 years with a total of $99,000. It had a 3% interest rate that compounded monthly. What was the principal?

Respuesta :

Answer:

The principle will be "40295.63". A further explanation is given below.

Step-by-step explanation:

The given values are:

Total amount,

A = 99,000

Rate of interest,

R = 3%

Time period,

T = 30 years

  = 360 months

As we know,

⇒ [tex]A=P(1+\frac{{\frac{R}{12} }}{100} )^T[/tex]

On substituting the values, we get

⇒ [tex]99000=P(1+\frac{\frac{3}{12}}{100})^{360}[/tex]

⇒ [tex]99000=P(1+\frac{\frac{1}{4} }{100}) ^{360}[/tex]

⇒       [tex]P=\frac{99000}{(1.0025)^{360}}[/tex]

⇒       [tex]P=40295.63[/tex]

The required value of principal will be p = "40295.63".

Given,

Total amount of loan is = A = $99,000

Rate of interest = R = 3%

Time period =T = 30 years

Convert into months = 12×30

                                = 360 months

According to the question,

[tex]A = P ( 1+ \frac{\frac{R}{12} }{100} )^{360}[/tex]

Put the value of A = 99,000 , T = 360 , R= 3

[tex]99,000 = P [ 1+ \frac{\frac{3}{12} }{100} ]^{360} \\\\P = \frac{99,000}{(1.0025)^{360} }[/tex]

P = 40295.63

The required value of principal p = 40295.63 .

For more information about Compound interest click the link given below.

https://brainly.in/question/1128320

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