What is the principle when borrowing $3100 at 15% per three years?

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SUMMARY

The principle when borrowing $3100 at a 15% interest rate over three years is definitively $3100. The formula I = prt, where I represents interest, p is the principal amount, r is the rate, and t is the time, confirms that the principal is the initial amount borrowed. In this scenario, the calculation setup of 3100 = p(0.15)(3) is correct, reinforcing that the principal does not include the interest to be paid back.

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mathdad
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When Dave borrowed $3100 at 15% per three years, the principle was?

Do I use I = prt?

If so, the set up is 3100 = p(0.15)(3), right?
 
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The principle is simply the amount borrowed, not the amount that will have to be paid back after interest is added. So, in this case the principle is \$3100.00. :)
 
MarkFL said:
The principle is simply the amount borrowed, not the amount that will have to be paid back after interest is added. So, in this case the principle is \$3100.00. :)

Strange question. The answer is given within the words.
 

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