The Repayment On A Loan Was Php 23600. If The Loan Was For 18 Months At 12% Interest In Year, How Much (2024)

Mathematics High School

Answers

Answer 1

If the repayment on a loan was Php 23600, the principal amount is equal to Php 131,111.11.

Given the following data:

Interest rate = 12%Simple interest = Php 23600Time = 18 months

Conversion:

12 months = 1 year

18 months = 1.5 year

To calculate the principal amount if the interest rate is 12% a year:

Mathematically, simple interest is given by the formula:

[tex]S.I = \frac{PRT}{100}[/tex]

Where:

S.I is the simple interest.P is the principal amount.R is the interest rate.T is the time measured in years.

Making P the subject of formula, we have:

[tex]P = \frac{100S.I}{RT}[/tex]

Substituting the given parameters into the formula, we have;

[tex]P = \frac{100 \times 23600}{12 \times 1.5}\\\\P = \frac{2360000}{18}[/tex]

Principal amount, P = Php 131,111.11

Read more: https://brainly.com/question/22621039

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