Question

←C=$● RATIOS, PROPORTIONS, AND PERCENTSFinding the principal, rate, or time of a simple interest loan or...https://www-awuExplanationAldo borrowed money from a credit union for 6 years and was charged simple interest at an annual rate of 8%. The total interest that he paid was $1920. Howmuch money did he borrow?If necessary, refer to the list of financial formulas.I need help with this problem.

Answer 1

To solve this problem, you can use the following formula for simple interest:

$A=Prt,$

where P is the initial amount, r is the rate of interest in decimal form, and t is the time in years.

Substituting A=1920, r=0.08, t=6, and solving for P, you get:

$\begin{gathered} 1920=P(0.08)(6), \\ P=\frac{1920}{0.08(6)}. \end{gathered}$

Simplifying, you get:

$P=4000.$

Answer:

$\text{ \ 4000.}$