The following information is known about a loan. Time is equal to 7 years Interest rate is equal to 6 percent Interest is equal to 840 point 0 0 dollars What was the principal on the loan?

Use the simple-interest formula I = P × r × t. Substituting the given values gives 840 = P × 0.06 × 7, so P = 840 ÷ 0.42 = $2,000. The principal was $2,000, which is choice D.

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