Money is borrowed at 15% simple interest. After one year $1009.70 pays off the loan. How much was originally borrowed
The amount of the original loan was $_____
2007-06-22 17:54:38 · 6 answers · asked by Hi 3 in Science & Mathematics ➔ Mathematics
1009.70 = 115% * x
x = 1009.70 / 115% = $878.
2007-06-22 18:00:44 · answer #1 · answered by TychaBrahe 7 · 1⤊ 0⤋
Let x = the original loan
x + 0.15x = 1009.70
Do you see why that is? They have to pay back the loan, which is x, plus interest which is 15% of x.
1.15x = 1009.70
x = 878
Check it to be sure. What's 15% of 878?
15/100 = y/878
100y = 13170
y = 131.70
878 + 131.70 = ?
1009.70
So, we know it's right.
The amount of the original loan was $878.00.
2007-06-23 01:08:48 · answer #2 · answered by its_victoria08 6 · 0⤊ 0⤋
The amount that was borrowed, let us call it x has increased by 15% (the interest rate) so its now 1.15x. Now you solve the equation 1.15x=1009.70, next step is to divide by 1.15 to find x. Doing this you end up with $878.00 (1009.70/1.15). The original amount borrowed was $878.00.
2007-06-23 01:13:17 · answer #3 · answered by Anonymous · 0⤊ 0⤋
simple interest equation:
Interest = (original money) * n * rate
the payment after n years = (original money) + Interest
P = (original money) + ( (original money) * n * rate)
P = (original money) * (1 + n*rate)
in your question, n = 1
original money = ?
rate = 0.15
the payment = 1009.70
original money = 1009.70/( (1+ 1*0.15)
= $878
2007-06-23 01:21:27 · answer #4 · answered by sinanissa 2 · 0⤊ 0⤋
$1,009.70 / 115% = $878.00
$878.00 is the original amount borrowed.
2007-06-26 09:43:37 · answer #5 · answered by Jun Agruda 7 · 2⤊ 0⤋
Simple Interest:
Interest = (principal)(rate)(time) or I = prt
note: principal is the original amount
Future value = principal + (principal)(rate)(time)
F = p + prt
1009.70 = p + p(0.15)(1)
1009.70 = p(1 + (0.15)(1))
1009.70 = p(1 + 0.15)
1009.70 = p(1.15)
1009.70 / 1.15 = p
878 = p
Answer: $878
2007-06-23 01:07:12 · answer #6 · answered by mathjoe 3 · 1⤊ 0⤋