Problema Solution
ronald wanted to borrow some money to expand his fruit shop. he was told he could borrow a sum of money for 30 months at 12% simple interest per annum and pay $1440 in interest charges. how much money could he borrow?
Answer provided by our tutors
let P be the money Ronald could borrow
t = 30 months = 30/12 = 2.5 years
r = 0.12 or 12% interest per anmum
I = $1440
P = ?
I = P*r*t
P = I/(r*t)
P = 1440/(0.12*2.5)
P = $4,800
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Ronald could borrow $4,800.