Question

The Problem: Phillips Health and Beauty Spa is replacing one of its workstations. The interest on a loan secured by the spa was $93.50. The money was borrowed at 5.5% simple interest for 2 years. What was the amount that they borrowed?

Answer 1

$850

Explanation:

Amount that was borrowed = interest / (interest rate x time)

93.50 / (0.055 x 2) =

93.50 / 0.11 = $850