The total accrued interest owed as of August 31 on a loan advanced the preceding June 3 was $169.66. If the variable interest rate started at 8.75%, rose to 9% effective July 1, and increased another 0.5% effective July 31, what was the principal amount of the loan?

Variable Interest Rate

An interest rate that can fluctuate over time based on underlying benchmarks or indexes.

Accrued Interest

Interest that has been incurred but not yet paid, typically referring to the interest accumulating on a bond or loan between payment periods.