We can use the formula for simple interest:
I = Prt
where I is the interest, P is the principal (the amount borrowed), r is the annual interest rate (as a decimal), and t is the time in years.
In this case, we know that Justin paid $245 in interest, the annual interest rate is 12.5% (or 0.125 as a decimal), and the time is 146/365 = 0.4 years (since there are 365 days in a year).
So we can plug in these values and solve for P:
245 = P * 0.125 * 0.4
245 = 0.05P
P = 245 / 0.05
P = 4900
Therefore, Justin borrowed $4900.
Justin took out a loan for 146 days and was charged simple interest at an annual rate of 12.5%.The total interest he paid on the loan was $245.
How much money did Justin borrow?
Assume that there are
365 days in a year, and do not round any intermediate computations.
If necessary, refer to the list of financial formulas.
1 answer
1 answer