Problema Solution
Mike borrowed some mo ey for 3 years at 4% simple interest. If he had to pay back a total of $3696, how much did he originally borrow ?
Answer provided by our tutors
interest = principal * rate * time
since this is 'simple interest' we assume time to be equal to 1, but it is possible that a value of '3' should be used
let 'x' represent the borrowed amount, then '3696-x' represents the interest accrued
3696-x = 0.04x
solving for 'x' we have x=3553.84
he originally borrowed approximately $3,553.84