Answer:
600
Step-by-step explanation:
To find the amount of money Hong borrowed, we can use the formula for simple interest:
\[ I = P \times r \times t \]
Where:
- \( I \) is the interest paid (\$126 in this case),
- \( P \) is the principal amount (the amount borrowed, what we're trying to find),
- \( r \) is the annual interest rate (7%, or 0.07 in decimal form),
- \( t \) is the time the money is borrowed for (3 years).
Plugging in the given values, we have:
\[ 126 = P \times 0.07 \times 3 \]
To solve for \( P \):
\[ P = \frac{126}{0.07 \times 3} \]
\[ P = \frac{126}{0.21} \]
\[ P = 600 \]
So, Hong borrowed $600.
