Problema Solution
Katie Chalmers borrowed money from her credit union at 13.2% simple interest to buy furniture. If the loan was repaid in 2½ years and the amount of interest was $1,320, how much did Katie borrow?
Answer provided by our tutors
let the amount borrowed be x
Simple interest = principal*rate*time / 100
1320 = x*13.2*2.5 / 100
x= 1320 * 2 * 100 / 5 / 13.2
x = $4000