Question

You pay 3.5% annual simple interest for 12 years on a loan, and you pay $1512 in interest. what is the total amount you will repay?

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\dotfill & \$1512\\ P=\textit{original amount deposited}\\ r=rate\to 3.5\%\to (3.5)/(100)\dotfill &0.035\\ t=years\dotfill &12 \end{cases} \\\\\\ 1512 = (P)(0.035)(12)\implies \cfrac{1512}{(0.035)(12)}=P\implies 3600=P~\hfill \boxed{\underset{\textit{total repay}}{\stackrel{3600+1512}{5112}}}`