Answered

Errol loaned Marvin some money at the rate of 7% interests per year when Marvin paid back the loan at the end of three years, he had to pay a P12, 000 interest. How much money did he borrow?

Sagot :

Rider21viz
Use the formula for Simple Interest:
             I = Pin
Where: I = simple interest
           P = principal amount of money initially borrowed
           i = interest rate
          n = number of interest periods.

So we will just substitute: and find P:
  I = Pin
              12,000 = P(0.07)(3)
(12000)/(0.07X3) = P
         57,142.86 = P
            57, 143 = P money borrowed by Errol ...ANSWER
  


Viz Other Questions