Question

At the end of 8 years, Anna paid $400 interest for a loan. If the simple annual interest rate was 4%, how much did Anna borrow?

Answer 1

its a, $1,250! ^>^

Explanation:

Answer 2

$1,250

Explanation:

You can find the answer using the following formula:

i = Prn

i= interest= $400

P= principal

r= rate of interest=0.04

t= time periods= 8

You can replace the values you have in the formula and then, isolate P:

400= P*0.04*8

400=P*0.32

P= 400/0.32

P= 1250

According to this, the answer is that Anna borrowed $1,250.