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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 450,780,andtheamountofaccruedinterestis450,780, and the amount of accrued interest is 189,450. What is the principal of the loan?

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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:

  1. Identify the maturity value of the loan: $450,780.
  2. Identify the amount of accrued interest: $189,450.
  3. Subtract the accrued interest from the maturity value to find the principal.

Principal=Maturity ValueAccrued Interest \text{Principal} = \text{Maturity Value} - \text{Accrued Interest}

Principal=450,780189,450 \text{Principal} = 450,780 - 189,450

Principal=261,330 \text{Principal} = 261,330

Therefore, the principal of the loan is $261,330.

This problem has been solved

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