Question

Hello thank you for viewing my question I need help on this problem please thank you

Answer 1

Given:

Number of days the loan lasted = 292 days

annual rate of interest =2.5%

Total interest paid = $146

Required: The amount David borrowed

Let the amount David borrowed be x

To solve the problem, we have the apply the simple interest formula:

`\begin{gathered} Interest\text{ = }\frac{principal\text{ }*\text{ rate }*\text{ time}}{100} \\ Where\text{ time is in years} \end{gathered}`

Converting the time in days to years:

`\begin{gathered} =\text{ 292 days }*\text{ }\frac{1\text{ year}}{365\text{ days}} \\ =\text{ 0.8 yr} \end{gathered}`

Substituing the given values and solving for x:

`\begin{gathered} 146\text{ = }\frac{x\text{ }*\text{ 2.5}*0.8}{100} \\ Cross-Multiply \\ 2x\text{ = 14600} \\ Divide\text{ both sides by 2} \\ x\text{ = 7300} \end{gathered}`

Hence, David borrowed $7300