Question

Scott gets a student loan to go to college after high school. If he pays $750 in interest at a rate of 3% over four years, how much must the loan have been for originally?

Answer 1

$6250

Explanation:

Step one:

given data

simple intereest= $750

rate= 3%

time= 4years

Required

The Principal P

Step two:

SI= PRT/100

750= P*3*4/100

750=12P/100

cross multiply we have

12P=750*100

divide both sides by 12

P=75000/12

P=$6250