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You pay 3.5% annual simple interest for 12 years on a loan, and you pay $1,512 in interest. How much is the principal?
A = Pe^rt Amount of interest paid = Principal*e^ (rate*time) (The rate must be in decimal form) 3.15% / 100 = .0315
1,512 = P[e^(.0315*12)] 1,512 / e^(.0315*12) = P 1036.06 = P $1036.06 was the Principal ** I left that value unrounded to the hundreds place because one doesn’t round with money. :)
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