The principal loan amount will be 250000. P is denoted by the principal loan amount
The complete repayment of money at the end of the period for which it was borrowed is referred to as the amount.
The given data in the problem is;
P is the principal loan amount
r is the rate of interest = 2.49%
n is the time period= of 30 years
The formula for the principal loan amount is found as;
[tex]\rm P=M(1-(1+\frac{r}{12} )^{\frac{12}{n}[/tex]
[tex]\rm P=986.50(1-(1+\frac{0.249}{12} )^{\frac{12}{30} }\\\\ P= 250000[/tex]
Hence the principal loan amount will be 250000.
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