Looking for answers? Westonci.ca is your go-to Q&A platform, offering quick, trustworthy responses from a community of experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

Money is borrowed at 18% simple interest. after one year, $610.06 pays off the loan. how much was originally borrowed?

Sagot :

The original amount borrowed was $517.

Simple Interest is the method to calculate the interest charged for a given number of years and given rate , in simple interest the principle remains same for each year.

Simple interest =[tex]\frac{P*R*T}{100}[/tex]

where P= principle, R=rate in % , T= time

We know that Amount= Principle+ Simple Interest........(1)

According to the question

Amount=$610.06

Rate=18%

time = 1yr

Substituting the value in equation (1) we get

[tex]610.06=P+\frac{P*18*1}{100}[/tex]

[tex]610.06=\frac{100P+18P}{100}[/tex]

[tex]610.06=\frac{118P}{100}[/tex]

[tex]61006=118P[/tex]

[tex]P=\frac{61006}{118}[/tex]

[tex]P=517[/tex]

Therefore  , The original amount borrowed was $517.

Learn more about Simple Interest here https://brainly.com/question/26400531

#SPJ4