sally paid $150 of interest on a loan she had for 2 years, with a simple interest rate of 5%. how much money…
sally paid $150 of interest on a loan she had for 2 years, with a simple interest rate of 5%. how much money did she initially borrow? hint: i = prt
Answer
Explanation:
Step1: Identify the formula variables
Given $I = 150$, $T=2$, $R = 0.05$ (since $5%=0.05$), and the formula $I = PRT$. We need to find $P$.
Step2: Rearrange the formula to solve for $P$
Dividing both sides of $I = PRT$ by $RT$ gives $P=\frac{I}{RT}$.
Step3: Substitute the values into the rearranged formula
$P=\frac{150}{0.05\times2}$. First, calculate $0.05\times2 = 0.1$. Then, $\frac{150}{0.1}=1500$.
Answer:
$1500$