Question

jay Jenkins takes out a 11.0% simple interest loan today that will be repaid 3 months from now with a payoff amount $8000.00. what amount is jay borrowing?

Answer 1

`\begin{gathered} \text{Amount}=prin\text{cipal}+\text{interest} \\ 8000=P+(PRT)/(100) \\ \text{Here, P n}eed\text{ to find} \\ R\Rightarrow11\text{ \%} \\ T\Rightarrow(3)/(12)year=(1)/(4)\text{year} \\ From\text{ the equation,} \\ 8000=P+(P*11*1)/(4*100) \\ 8000=1.0275P \\ P=7785\text{ \$ amount borrowed} \end{gathered}`