Question

You just finished paying your car off and you noticed that you paid a total of $6,900 in

Interest for 6 years and at a Interest rate of 5%. Knowing all this what was the original
amount you borrowed? (be sure to include cents. Example if you got $34 dollars as an
answer you need to type in $34.00)

Answer 1

Answer: $23000

Explanation:

The formula for interest will be:

Interest = Principal × Rate × Time

We'll then slot in the values given and this will be:

6900 = Principal × 5% × 6

6900 = Principal × 0.05 × 6

6900 = Principal × 0.3

Principal = 6900/0.3

Principal = 23000

The amount borrowed is $23000