Final answer:
Fred's original loan amount for the car was $26,166.67, calculated by dividing the interest he paid ($1570) by the interest rate (6%) for a presumed time of one year.
Step-by-step explanation:
To calculate the original loan amount on which Fred paid $1570 in interest at a rate of 6%, we utilize the formula for simple interest: I = PRT (Interest = Principal x Rate x Time). Given that this problem does not specify a time period, we will assume that the interest is for one year. Rearranging the formula to solve for the principal, we get P = I / (R x T).
Using the information from the question:
• Interest (I) = $1570
• Rate (R) = 6% or 0.06
• Time (T) = 1 year (assumed)
Substituting the values into the formula:
P = $1570 / (0.06 x 1) P = $1570 / 0.06 P = $26,166.67
Therefore, the original loan amount for Fred's car was $26,166.67.