Question

Joe borrows money for a fridge and pays $120.00 in interest for 24 months at a rate of

8%. How much money did he borrow?
Show work

Answer 1

$750

Step-by-step explanation:

Interest is calculated using the formula below.

I = p x r x t

where I= interest

P= principal amount

r= interest rate

t= time

In this case, interest is $120, P is not given, r = 8% t= time 2 years( 24 months)

It means $120= P x 8% x 2

$120= p x 0.08 x 2

$120= p0.16

P= $120/0.16

P=750

Joe borrowed $750