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what is the maximum amount ginger Logan can borrow today if it must be repaid in 4 months with simple interest at 9% and she knows that at the time she will be able to repay no more than $55,000?

Sagot :

hello

to solve this question, we can simply use the formula of simple interest here where our principal value would be the maximum amount she can borrow at the moment

[tex]\begin{gathered} s\mathrm{}i=p(1+rt)_{} \\ \end{gathered}[/tex][tex]\begin{gathered} s\mathrm{}i=55000 \\ p=\text{ ?} \\ r=9\text{ \% = 0.09} \\ t=\text{ 4} \end{gathered}[/tex][tex]\begin{gathered} 55000=p(1+0.09\times4)_{} \\ 55000=p(1+0.36) \\ 55000=p\times1.36 \\ \text{divide both sides by the coeffiecient of p} \\ \frac{55000}{1.36}=\frac{1.36p}{1.36} \\ p=40441.17 \end{gathered}[/tex]

from the calculations above, the maximum amount Logan can borrow at the moment is $40441.17

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