Question

Money is borrowed at 11% simple interest. After one year, $995.67 pays off the loan. How much was originally borrowed?

Answer 1

$9051.55

Explanation:

Simple Interest =
`\[((Principal * Rate * Time))/(100)\]`

Simple Interest = $995.67

Rate = 11%

Time = 1 year

Substituting the values,

995.67 =
`\[((Principal * 11 * 1))/(100)\]`

`\[=> Principal=((995.67 * 100))/(11)\]`

`\[=> Principal=((995.67 * 100))/(11)\]`

`\[=> Principal=$9051.55\]`