Question
A borrower has agreed to pay 10000 in 9 months at 10% simple interest. How much did this borrower receive?
Answers
GPT 3.5
To find out how much the borrower received, we need to calculate the amount of the loan.
The formula to calculate simple interest is:
I = P * r * t
Where:
I = interest
P = principal (the amount borrowed)
r = interest rate (in decimal form)
t = time (in years)
In this case, the interest rate is 10% (0.10) and the time is 9 months (0.75 years).
I = P * 0.10 * 0.75
We know that I (interest) is $10,000 because that is the amount the borrower agreed to pay.
$10,000 = P * 0.10 * 0.75
To find P (principal), we divide both sides of the equation by (0.10 * 0.75):
$10,000 / (0.10 * 0.75) = P
$10,000 / 0.075 = P
P ≈ $133,333.33
Therefore, the borrower received approximately $133,333.33.
The formula to calculate simple interest is:
I = P * r * t
Where:
I = interest
P = principal (the amount borrowed)
r = interest rate (in decimal form)
t = time (in years)
In this case, the interest rate is 10% (0.10) and the time is 9 months (0.75 years).
I = P * 0.10 * 0.75
We know that I (interest) is $10,000 because that is the amount the borrower agreed to pay.
$10,000 = P * 0.10 * 0.75
To find P (principal), we divide both sides of the equation by (0.10 * 0.75):
$10,000 / (0.10 * 0.75) = P
$10,000 / 0.075 = P
P ≈ $133,333.33
Therefore, the borrower received approximately $133,333.33.