SOLUTION: Consumer laon is made at 10% over 3.5 years. If $2,125 interest is paid what is the principal? What is the total amount paid?

Question 176394: Consumer laon is made at 10% over 3.5 years. If $2,125 interest is paid what is the principal? What is the total amount paid?
Found 2 solutions by jojo14344, MathTherapy:
Answer by jojo14344(1513) (Show Source): You can put this solution on YOUR website!

Usually, commercial/consumer loans are on a Simple Interest Method of Payment (unless otherwise specified), where Principal and Interest are due when the loan matures.
Simple Interest=

=$6071.4286 Principal
Total Amount Paid: =$8196.4286
Thank you,
Jojo
Answer by MathTherapy(10556) (Show Source): You can put this solution on YOUR website!
Consumer laon is made at 10% over 3.5 years. If $2,125 interest is paid what is the principal? What is the total amount paid?
I = PTR
2,125 = P*3.5*.1
2,125 = .35P
P = 2,125 / .35
P = $6,071.43
Principal = $6,071.43
Total amount paid = $6,071.43 + $2,125 = $8,196.43
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