Question

PLEASE I NEED HELP, DUE IN 1hr!!!!

A bank loan was recently paid off over a period of 15 years for a total amount of $250,000. What was the original principal
amount if the loan had compounded monthly at an interest rate of 4%?
Note: Please round your answer to the nearest cent. Preferably, save all the rounding for the very last step in the formula.

Answer 1

Answer:

$137,339.88

Step-by-step explanation:

Here is the equation for compound interest: A=P(1+(r/n))^nt

where A=amount of money, P=principal, r= rate in decimal, n=number of times compounded per t, and t=time

In this case:

A=$250,000

P= ?

r= 0.04

n= 12 month/yr

t= 15 yrs

You can manipulate the equation to solve for P:

P=A/[(1+(r/n))^nt]

Plug in variables then solve:

P= $\frac{250,000}{(1+\frac{0.04}{12})^{12*15} }$

P=137339.8761 = $137,339.88

Answer 2

The original principal for the given parameters is $1,45,806.602.

Given that, amount (A)=$250,000, time period =15 years and the rate of interest=4%.

What is the formula to find principal with the amount compounded annually?

The formula to find principal with the amount compounded annually is $P=\frac{A}{(1+\frac{r}{100} )^{nt} }$.

where A=amount of money, P=principal, r= rate in decimal, n=number of times compounded per t, and t=time

Now, $P=\frac{25000}{(1+\frac{0.04}{12} )^{12 \times15} } =\frac{25000}{(1.003)^{180} }$

=250000/1.7146=$1,45,806.602

Therefore, the original principal is $1,45,806.602.

To learn more about compound interest visit:

https://brainly.com/question/14295570.

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