Question

Money is borrowed at ​10% simple interest. After one​ year, ​$918.50 pays off the loan. How much was originally​ borrowed

Answer 1

$858.4

Explanation:

Use simple interest formula A= P(1+rt)

We know t is 1 year

A is unknown P is 918 and r is 0.07

A= P (1+0.07)

918.5= P * 1.07

918.5/1.07=P

$858.4=P is the amount borrowed