A Loan of P Is Taken Out at a Simple

question 72

Multiple Choice

A loan of P is taken out at a simple interest rate of r = 10.4%.Two months later,a partial loan payment of $500 is made.Of this payment,$301.34 went towards paying interest on the loan while $198.66 went to reducing the outstanding balance of the loan.What is the value of P? (Answer to nearest dollar)

• A)$2898
• B)$11,461
• C)$3096
• D)$17,385