Question

Kaitlyn's older brother borrowed money for school he took out a loan that charges 6% simple interest he will end up paying 720 and interest after 6 years how much is Kaitlyn's brother borrow for school? ​

Answer 1

529.41

Explanation:

From the above question, we are to find the Principal

The formula to find the Principal (Initial amount invested) is =

P = A / (1 + rt)

Where

A = Amount paid after t years. = 720

r = rate of interest = 6% = 0.06

t = time in years = 6

First, converting R percent to r a decimal

r = R/100 = 6%/100 = 0.06 per year.

Solving our equation:

P = 720 / ( 1 + (0.06 × 6)) = 529.41176470588

Approximately

P = 529.41

Therefore, Kaitlyn's brother borrowed 529.41 for school