Question

Connor took out a 4-year loan to buy a car at a 4% simple interest rate. If he has to pay $240 in interest, how much principal did he borrow?

Answer 1

He borrowed 1500 principle

Explanation:

Answer 2

The principal he borrowed is $1500

Explanation:

Let's assume principal he borrowed as P

now, we can use formula

`SI=(P* r* t)/(100)`

where

SI is simple interest

r is interest rate

t is time in years

we are given

r=4%

SI=240

t=4

now, we can plug this value

`240=(P* 4* 4)/(100)`

now, we can solve for P

`16P=24000`

`P=1500`

So,

The principal he borrowed is $1500