3. Mr. Jones took a loan from the bank at 11.25% per annum for 9 months and repaid $270 simple interest. Calculate the amount of money Mr. Jones borrowed from the bank.

Answer 1

Let's assume that Mr. Jones borrowed x dollars from the bank.
The formula for simple interest is:
Interest = Principal * Rate * Time

In this case:
Interest = $270
Rate = 11.25% per annum = 11.25/100 = 0.1125
Time = 9 months = 9/12 = 0.75

So, 270 = x * 0.1125 * 0.75

270 = 0.084375x

Dividing both sides by 0.084375:
x = 270 / 0.084375

x ≈ $3,200

Therefore, Mr. Jones borrowed approximately $3,200 from the bank.