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.

Question

Mathematics

Immanuel Chen

13 January, 04:56

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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Delilah Calderon · Answer 1

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.