find the amount of the principal on a loan at 6% interest for 274 days if the in

Algebra
Tutor: None Selected Time limit: 1 Day

find the amount of the principal on a loan at 6% interest for 274 days if the interest was $68.50,using the ordinary interest method.

Jun 20th, 2015

Thank you for the opportunity to help you with your question!

The ordinary interest method is used to calculate interest for a period of  360 days in a year.

 the formula is
interest=principal*(days/360)*rate 

substituting the values in the formula
68.50=principal*(274/360)*6%
hence
principal=68.50*(360/274)/0.06
=$1500 

=$1500 answer

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 20th, 2015

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