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?

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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(1512) About Me  (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=I=PRT
2125=P%280.10%29%283.5%29
P=2125%2F%280.35%29=$6071.4286 Principal
Total Amount Paid: I%2BP=2125%2B6071.4286=$8196.4286
Thank you,
Jojo

Answer by MathTherapy(1421) About Me  (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