SOLUTION: Compute the principal for the following loan. Use ordinary interest when time is stated in days. Principal= unknown Rate=10.7% Time=90 days Interest=$5,350

Algebra ->  Finance -> SOLUTION: Compute the principal for the following loan. Use ordinary interest when time is stated in days. Principal= unknown Rate=10.7% Time=90 days Interest=$5,350      Log On


   

Question 857930: Compute the principal for the following loan. Use ordinary interest when time is stated in days.
Principal= unknown
Rate=10.7%
Time=90 days
Interest=$5,350
Answer by Seutip(231) About Me  (Show Source):
You can put this solution on YOUR website!
I=Prt
therefore,
P=I/rt
P=($5,350)/((.107)(90/360)) We use 360 because it's silent in the problem
P=$5,350/0.02675
P=$200,000
Hope that helps!
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