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Harlamova29_29 [7]
1 year ago
10

Hans borrowed money from a credit union for 4 years and was charged simple interest at an annual rate of 6%. The total interest

that he paid was $1920. How much money did he borrow?
Mathematics
1 answer:
Gnesinka [82]1 year ago
7 0

Answer:

Hans initially borrowed $1499.04

Step-by-step explanation:

Information:

Borrowed for 4 years

Interest rate of 6%

Final amount: $1920

--------------------------------------

1. Find 6% less of 1920.

This would be the same as multiplying a number by 0.94

So: 1920 * 0.94 = 1804.8

Then repeat this 3 more times:

1804.8 * 0.94 = 1696.51   <(Because money is only shown in cents, we round to the nearest 100's place for decimals.)

1696.51 * 0.94 = 1594.72

Then finally,

1594.72 * 0.94 = 1499.04

This means that the initial cash amount Hans borrowed was $1499.04

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