Find the original amount (principal) of the given loan.
9.6% for 4 years;total to be repaid 2,560.40
Thanks Soooooooo Much...Bye
2007-03-30 05:38:45 · 6 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
A = P (1+r)^t
2560.40 = P (1+.096)^4
Evaluate the ( ), divide to find P.
Unless, of course, there's some compounding... Then you need a slightly fancier formula.
2007-03-30 05:49:07 · answer #1 · answered by tedfischer17 3 · 0⤊ 0⤋
If P is the principal sum and i% the interest rate per annum, the repayable amount R after n years is given by:
n = 1, R1 = P(1+i)
n = 2, R2 = P(1+i)^2
n = 3, R2 = P(1+i)^3
n = 4, R2 = P(1+i)^4
P(1+i)^4 = 2560.40
P = 2560.40 / (1+0.096)^4
P = 1774.46
2007-03-30 12:50:03 · answer #2 · answered by wysely 4 · 0⤊ 0⤋
2560.4 = initial amount + interest
= initial amount + initial amount * rate* time
= x + x*.096*4
= x(1+.096*4)
dividing both sides by 1+.096*4
x = 1850
assuming simple interest compounded yearly
2007-03-30 12:51:48 · answer #3 · answered by Maverick 7 · 0⤊ 0⤋
Original amount is 2,119.18
2007-03-30 12:51:53 · answer #4 · answered by HotMama 1 · 0⤊ 0⤋
$1850 is the right answer(principal)
2007-03-30 12:49:45 · answer #5 · answered by kristi 1 · 0⤊ 0⤋
$1774.46, assuming simple interest.
2007-03-30 13:35:17 · answer #6 · answered by ironduke8159 7 · 0⤊ 0⤋