Question

Sam borrowed money from a credit union for 3 years and was charged simple interest at an annual rate of 2%. The total interest that he paid was $48. How much money did he borrow?

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Answer 1

the amount of money sam has borrowed was 2400

he paid interest 2%

total intreast 48$

48÷3 = $16 a year

2%= $16

16×5= $80 for 10%

$80× 10= 800

800×3= 2400 total amount was borrowed

so 2400-2%= 2352

2400- 2352= 48