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East coast bank of america made a loan at 9.75% interest for 254 days. if the amount of interest was $270.50, use the exact interest method to find the amount of principal borrowed. (round to the nearest whole dollar amount)

Respuesta :

Answer:

$3,986.77

Step-by-step explanation:

Data provided in the question:

Interest rate = 9.75% = 0.0975

Time = 254 days = [tex]\frac{254}{365}[/tex] = 0.6959

Amount of interest = $270.50

Now,

Interest Amount = Principle × Rate of interest × Time

or

$270.50 = Principle × 0.0975 × 0.6959

or

$270.50 = Principle × 0.06785

or

Principle = $3,986.77

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