Question

Shen took out a loan for 292 days and was charged simple interest at an annual rate of 2.5%. The total interest he paid on the loan was $146. How much money did Shen borrow?

Answer 1

Shen borrowed $7,300.

Step-by-step explanation:

Since the annual interest rate of the loan taken by Shen is 2.5%, if the loan had a duration of 292 days, the real interest of said loan is 2% (2.5 / 365 x 292).

Therefore, if the interest paid for the loan was $ 146, and this amount is equal to 2% of the value of the loan, to obtain said value the following cross multiplication must be performed:

2 = 146

100 = X

((100 x 146) / 2) = X

(14,600 / 2) = X

7,300 = X

Therefore, the loan amount was $ 7,300.