Verified Answer :

MissPhiladelphia

This is a simple interest formula computation.

Given:
Interest = 826
Interest rate = 2.6%
term = 7 years.

The simple interest formula is:

Interest = Principal Interest rate term

To solve for the principal:
Principal = Interest / (Interest rate term)
Principal = 826 / (2.6% 7)
Principal = 826 / 18.2%
Principal = 4,538.46

To check: Solve for the interest

I = 4,538.46 2.6% 7
I = 117.999 * 7
I = 825.993 rounded up to 826.

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