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scott takes gets a student loan to go to college after high school.If he pays 750 interest at a rate of 3%,how much must the loan have been for originally.

1 Answer

3 votes

Answer:

$25,000

Explanation:

To calculate the original amount of the student loan that Scott took, we can use the formula for calculating simple interest:

Simple Interest = Principal (loan amount) x Rate x Time

Given:

Interest (I) = $750

Rate (R) = 3% or 0.03 (as a decimal)

Let's assume the time (T) for the loan is one year, as the rate is given as an annual rate.

Plugging in the values into the formula:

750 = Principal x 0.03 x 1

750 = 0.03 Principal

To solve for Principal, we can divide both sides of the equation by 0.03:

Principal = 750 / 0.03

Principal = $25,000

So, the original amount of the student loan that Scott took was $25,000.

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User Dmytroy
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