Jaime’s refrigerator loan statement said he would pay $1,026 in interest for a 4-year loan at 13.5%. How much did Jaime borrow to buy the refrigerator?

Short Answer

Expert verified

The principal amount is $1900.

Step by step solution

01

Step 1. Given information

S.I=$1026TimePeriod=4yearsRateofinterest=13.5%

02

Step 2. Calculation

P=3294T=5R=2.6%Therefore,SI=P×R×T10013.5×4×x100=1026=$1900

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