Question
Dr. Collins borrowed some money to buy new furniture for her office. She paid $720.00 simple interest on a 7.5-year loan at 16%. Find the principal.
Answers
MathMate
Wow, 16% when banks pay 2% p.a.?
7.5 years at 16% simple interest
= 7.5*16% in one year
= 120%
120% : $720
100% : X
By cross multiplying:
X=100%*$720/120%= $600.
7.5 years at 16% simple interest
= 7.5*16% in one year
= 120%
120% : $720
100% : X
By cross multiplying:
X=100%*$720/120%= $600.