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10 February, 10:28

Enrique takes out a student loan to pay for his college tuition thus year at an annual interest rate of 4% for 20 years. Find the amount of the loan if the interest paid was $16,400.

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  1. 10 February, 13:23
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    I used the equation i=prt. (interest = principle*rate*time) But for this equation you can use p = i / rt

    16400=.04*20*p

    16400=0.8p

    16400/0.8 = 20500

    20500 = p

    The principle or the amount of the loan is $20,500.
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