Question

sam was charged $1050 in interest on a loan with a 2.5% interest rate. what was the original amount of the loan if he took 5 years to pay it back?

Answer 1

$918.75

Explanation:

2.5 ÷ 100 = 0.025 × 1050 = 26.25

26.25 × 5 = 131.25

1050 - 131.25 = 918.75