The total amount of a loan plus interes was $38,750. The loan was payable in 10 years at 5.5% If the interest?

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for 1 year was $1375, what was the principle?

a $38,750
b $30,000
c $25,000
d $25,000

2007-07-05 15:30:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Personal Finance

c is 28,000 sorry

2007-07-05 16:05:35 · update #1

D. If the interest paid each year was the same.

2007-07-05 15:34:49 · answer #1 · answered by valet4u2 3 · 0⤊ 0⤋

Can't say. Not enough information to answer the question. The interest paid is higher in the early years and drops as the loan ages.

2007-07-05 22:34:46 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋

C and D are the same amount, but the answer is 25,000, if the interest stayed the same each year.

2007-07-05 22:35:50 · answer #3 · answered by Anonymous · 0⤊ 0⤋