Question

Money is borrowed at ​8% simple interest. After one​ year, ​999.00$ pays off the loan. How much was originally​ borrowed?

Answer 1

PV= $925

Explanation:

Giving the following information:

Money is borrowed at ​8% simple interest. After one​ year, ​$999 pays off the loan.

To calculate the original value of the loan, we need to use the following formula:

PV= FV/(1+i*n)

PV= 999/(1+0.08*1)

PV= $925