Money is borrowed at 8%simple interest. After one year $1284.12 pays off the loan. How much was originally borrowed?

Question

Mathematics

Chandler Shaffer

12 December, 08:59

Money is borrowed at 8%simple interest. After one year $1284.12 pays off the loan. How much was originally borrowed?

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Answers (1)

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Tyrell Mendoza · Answer 1

Interest: i = p * r * t.

Here, p + interest = $1284.12. Thus,

p + p * 0.08 * 1 = $1284.12. Simplifying,

1.08p = $1284.12. Solving for p, p = $1189.

The amount originally borrowed was $1189.