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6. For the simple interest loan whose terms are given below, find the principal required to reach the given future value at the end of the specified time.Future value:$8500Interest rate:5.2%Time:4 yearsPrincipal: $

Answer :

Given,

Future value is $8500

Interest rate: 5.2%.

Time: 4years.

Let the principal amount be P.

Now,

[tex]\begin{gathered} 8500-P=\frac{P\times4\times5.2}{100} \\ 8500-P=0.208P \\ 1.208P=8500 \\ P=\frac{8500}{1.208} \\ P=7036.4 \end{gathered}[/tex]

Hence, the principal is $7036.4

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