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money is borrowed at 7% simple interest. After one year, $607.76 pays off the loan. How much was originally borrowed?

Sagot :

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Answer: $568

Step-by-step explanation:

To determine the original amount of money borrowed, we can use the formula for simple interest:

A = P(1+rt), where:

  • A is the total amount paid after interest
  • P is the principal amount (the original amount borrowed)
  • r is the annual interest rate (as a decimal)
  • t is the time in years

We are given:

  • A = $607.76
  • r = 0.07 (7% interest rate)
  • t = 1 year

Let's substitute these values into the formula:

607.76 = P(1+0.07·1)

Solve for P:

607.76 = P(1+0.07)

607.76 = P +0.07P

607.76 = 1.07P

P = 607.76/1.07

P = 568

$568 was the amount originally borrowed.

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