Answer:
$750
Explanation:
Interest is calculated using the formula below.
I = p x r x t
where I= interest
P= principal amount
r= interest rate
t= time
In this case, interest is $120, P is not given, r = 8% t= time 2 years( 24 months)
It means $120= P x 8% x 2
$120= p x 0.08 x 2
$120= p0.16
P= $120/0.16
P=750
Joe borrowed $750
