Hayley makes annual end-of-year payments of $6,260.96 on a five-year loan with an 8 percent interest rate. the original principal amount was

The formula of the present value (principle) of annuity ordinary is

Pv=pmt [ (1 - (1+r) ^ (-n)) : r]

Pv present value (principle) ?

PMT payment per year 6260.96

R interest rate 0.08

N time 5years

Pv=6,260.96 * ((1 - (1+0.08) ^ (-5)) : (0.08))

pv=24,998.20