The total amount paid on a 35 year loan was $98,000. if the interest rate was 4.1% and compounded monthly, what was the principal? round your answer to the nearest cent.

The principal amount was $23,393.45

Step-by-step explanation:

The total amount paid on a 35 year loan was $98,000 at the rate of interest 4.1%

We will calculate Principal amount by this formula

Where A = amount (98,000)

           P = Principal amount (P)

           r = rate of interest 4.1% (0.041)

           n = number of compounding interest monthly (12)

           t = time (35 years)

98,000 = P(4.189386)

= 4.189386P = 98,000

P =

P = 23,392.4494 ≈ $23,392.45

The principal amount was $23,393.45