Find the principal of a loan at 62 if the simple interest af

Find the principal of a loan at 6.2% if the simple interest after 5 years 6 months is $2387.

We know that I = PRT

Where, I is simple intrest

P is principal amount

R is rate of interest

T is time

Now from the given information, we have

I = 2387

T = 5+(6/12) years = 5+1/2 = 11/2 years

R = 6.2%

So P = I/RT = 2387/(.062)(11/2) = 2387/(.031)(11) = 217/.031 = $7000

So the principal amount is $7000