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.
A borrower has agreed to pay 10000 in 9 months at 10% simple interest. How much did this borrower receive?
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