Asked by anonymous
Martin takes out a simple-interest loan at 7.5 %. After 6 months, the amount of interest on the loan is $69.64. What was the amount of the loan?
is $522.30 correct
is $522.30 correct
Answers
Answered by
MathMate
Interest amount I over a principal P at r% per annum for n years is:
I=Prn
69.64=P*0.075*0.5
Note: 0.075=7.5%, 0.5year=6 months.
solve for P to get
P=69.64/(0.075*0.5)=1857.07
Check:
Interest = 1857.07*0.075*0.5
=$69.64 OK.
=
I=Prn
69.64=P*0.075*0.5
Note: 0.075=7.5%, 0.5year=6 months.
solve for P to get
P=69.64/(0.075*0.5)=1857.07
Check:
Interest = 1857.07*0.075*0.5
=$69.64 OK.
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