If you take out a $1,000 loan for college at 7% interest, what is the principal?
Solution:
It is given that
Amount taken as loan = $1,000
Rate of interest = 7%
We know that the principal amount is the amount which is borrowed excluding the interest.
Therefore, the principal is $1,000.
Example:
If you take out a $5,000 loan for college at 8% interest, what is the principal?
Solution:
It is given that
Amount taken as loan = $5,000
Rate of interest = 8%
We know that the principal amount is the amount which is borrowed excluding the interest.
Therefore, the principal is $5,000.
If you take out a $1,000 loan for college at 7% interest, what is the principal?
Summary:
If you take out a $1,000 loan for college at 7% interest, the principal is $1,000.
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