Question

​Joshua’s computer loan statement said he would pay​ $1,244.34 in simple interest for a​ three-year loan at​ 12.4%. How much did Joshua borrow to buy the​ computer?

Answer 1

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\dotfill & \$1244.34\\ P=\textit{original amount deposited}\\ r=rate\to 12.4\%\to (12.4)/(100)\dotfill &0.124\\ t=years\dotfill &3 \end{cases} \\\\\\ 1244.34=P[1+(0.124)(3)]\implies 1244.34=P(1.372) \\\\\\ \cfrac{1244.34}{1.372}=P\implies 906.95\approx P`