Problema Solution
Money is borrowed at 14% simple interest. After one year, $1052.22 pays off the loan. How much was originally borrowed?
Answer provided by our tutors
Interest = Principal * Rate * Time
Time = 1 year
Principal = x
Rate = 14% or 0.14
Interest = 0.14x
Principal + Interest = $1052.22
x + 0.14x = 1052.22
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click here to see the equation solved for x
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x = $923
The original amount borrowed as $923.