Question

If Miguel paid $525 interst on a loan that a 5% simple interest rate, how much did he borrow?

Answer 1

Sure, I can help you with that.

Let's use the simple interest formula:

Simple Interest (SI) = Principal * Interest Rate * Time

We are given the following information:

* SI = $525

* R = 5% = 0.05

* T = 1 year

We need to find the principal, which is denoted by P.

P = SI / R * T

P = 525 / 0.05 * 1

P = $10,500

Therefore, Miguel borrowed $10,500.

I hope this helps! Let me know if you have any other questions.

Is there anything else I can help you with?

Answer 2

For a 1 year loan, he borrowed $10,500.

Explanation:

If the loan was for 1 year, then he borrowed $525/0.05 = $10,500.