The maturity value of a home loan is $450,780, and the amount of accrued interest is $189,450. What is the principal of the loan?
Question
The maturity value of a home loan is 189,450. What is the principal of the loan?
Solution
To find the principal of the loan, we need to subtract the amount of accrued interest from the maturity value of the loan. Here are the steps:
- Identify the maturity value of the loan: $450,780.
- Identify the amount of accrued interest: $189,450.
- Subtract the accrued interest from the maturity value to find the principal.
Therefore, the principal of the loan is $261,330.
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