Question

Yue Chen borrowed some money from the bank at an 11% annual rate for 5 years. She paid $1,375 in interest. How much money did she borrow when she applied for the loan?

Answer 1

$1375 is 11% interest rate of a loan
Loan: x
$1375:11%=$x:100%, 11x=1375*100, x=(1375*100)/11, x=12500
Yue Chen borrowed $12500 from a bank when she applied for the loan.

Answer 2

Simple interest I = PRT/100 Where P is the principal, R is the rate and T the time. The question seeks to know the amount borrowed (Principal) So we have 1, 375 = (P * 11 * 5)/100 1375 * 100 = 55P P = (1375 * 100)/55 P = 137500/55 = 2500. Yue borrowed $2, 500.