Question

Sally borrows some money at a 15% interest rate. She repays the loan in full after 30 months and pays $1692 in interest. How much did she borrow?

Answer 1

Answer: $4512 was the amount she borrowed.

Explanation:

SI = 1692

R = 15% = 0.15

T = 30 months = 2.5 years

SI = PRT

1692 = P x 0.15 x 2.5

1692 = 0.375P

P = 1692 / 0.375

P = 4512