Question

Ellie borrows money at a year simple rate of 6 1/2% after 4 years ellie owes 39 interest

Answer 1

Using simple interest, it is found that Ellie borrowed 150 units of money.

Simple Interest

Simple interest is used when there is a single compounding per time period.

The amount of interest after t years in is modeled by:

$I = Prt$

In which:

• P is the initial amount.

• r is the interest rate, as a decimal.

In this problem:

• Rate of 6 1/2%, that is, r = 0.065.

• After 4 years, hence t = 4.

• She owes 39 interest, that is, I = 39.

Then, solving for P, we find the amount she borrowed.

$I = Prt$

$39 = P(0.065)(4)$

$P = \frac{39}{0.065(4)}$

$P = 150$

Ellie borrowed 150 units of money.

To learn more about simple interest, you can take a look at brainly.com/question/25296782